The landing cost of imported Premium Motor Spirit (PMS) has decreased to ₦922.65 per litre, undercutting the ₦955 per litre price at the Dangote Petroleum Refinery’s loading gantry. This price reduction has prompted fuel marketers to shift towards imported products, citing better profitability compared to Dangote’s refined petrol.
Industry reports reveal that oil marketers imported over 76.84 million litres of petrol within two days, highlighting a growing dependence on foreign supplies. This development comes despite earlier regulatory efforts to prioritize local refining, including a proposed 180-day suspension of imports to boost Dangote Refinery’s operations.
However, marketers argue that there was no enforceable agreement mandating exclusivity to Dangote’s products. “The lower cost of imported petrol is an undeniable incentive for dealers. Marketers will naturally seek cheaper alternatives to maintain competitiveness,” a major marketer explained.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) had initially championed Dangote Refinery’s market entry as a means to stabilize fuel pricing and reduce reliance on imports. Yet, with depot prices remaining high at ₦950 to ₦990 per litre across major locations, the economic appeal of imports has overshadowed these goals.
For consumers, the drop in import costs raises hopes of potential price adjustments. However, the dynamics between local refining and importation remain uncertain as marketers navigate pricing pressures and profitability concerns.