₦airaland Forum

•Imported PMS landing cost now cheaper than Dangote’s price as dealers import 76.84m litres in two days

Oil marketers have revealed that the landing cost of Premium Motor Spirit (petrol) as of Friday was N922.65 per litre.

Dealers said this cost factors in various expenses including shipping, import duties, and exchange rates.

The amount is a considerable reduction of N32.35 from the N955 per litre offered at the loading gantry of the Dangote Petroleum Refinery.


This decrease in landing cost is expected to influence the price at which petrol is sold to consumers and could increase marketers’ interest in returning to petrol imports.

“The lower cost of imported petrol is often an incentive to dealers and you won’t blame marketers who import the product,” a major marketer, who spoke in confidence due to lack of authorisation to speak on the matter, stated.

Last Sunday, the Dangote Petroleum Refinery said the rise in petrol price from N899.50 was due to an increase in the cost of crude oil, the major component for refined petroleum products.

However, this latest decline in landing cost, which reflects the price of importing and distributing the product, signals some relief from the pressures of global market fluctuations and supply chain challenges.

But despite this reduction, the retail price of petrol in Nigeria has remained high, with major marketers continuing to sell refined products between N990 and N1,010 per litre in the Federal Capital Territory.

According to the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria on Friday and obtained by our correspondent on Sunday, the on-spot estimated import parity into tanks was N922.65 per litre, a reduction of N21 or 2.2 per cent from the N943.75 per litre quoted on Thursday.

The average cost for 30 days rose to N939.52 per litre on Friday, up from N929.07 per litre on Thursday, and N900.74 per litre on Tuesday.

The document also noted that the price of Brent crude was benchmarked at $78.29 per barrel, down from $78.88 per barrel the previous day, with an exchange rate of N1,550 per dollar.

This cost is viewed as an improvement for importers, providing private depot owners and independent marketers with an alternative route to profitability and the opportunity to source cheaper products.

With the average ex-depot price across all locations ranging from N950 to N990 per litre, importers stand a chance to cover costs significantly lower than recent historical averages and generate sustainable margins.

The updated landing costs and aligned ex-depot pricing indicate a more profitable environment for stakeholders in the downstream oil and gas sector. However, it also highlights the ongoing influence of exchange rate fluctuations and freight costs on Nigeria’s energy market.

Further checks by our correspondent while analysing petrol price movements at loading depots for last week showed that the loading cost of the commodity was reduced by N10.

Nipco sold its product at N970 from N965 per litre earlier in the week. Aiteo closed the week at N960, while Sahara made a N20 reduction closing at N960 from N980 earlier in the week. Swift opened at N970 and closed at N960. Wosbab and AA Rano closed the week selling their products at N960 per litre.

In Port-Harcourt, Bulk Strategic Depot opened at N1,005 but closed at N981, indicating a reduction of N24. Also, depots in Delta and Calabar maintained a price range of N972 and N990.

76.84m imported petrol

Meanwhile, fresh findings have shown that oil marketers imported a total sum of 57,301 metric tonnes of fuel between Tuesday, January 21, 2025 and Wednesday, January 22, 2025.

Going by the conversion rate of 1,341 litres to one metric tonne, it, therefore, implies that the marketers brought in about 76.84 million litres of petrol within two days.

This data sourced from the Nigerian Port Authority also showed that the vessels containing 20,400mt and 36,901mt berthed at the Apapa and Tincan ports in Lagos at 12 midnight and 3:49 pm, respectively. It was handled by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited.

The document also showed that two vessels without documented capacity berthed at the Dangote terminal located at the Lekki Deep Seaport on Sunday.

But commenting on the development, the National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said there is an agreement by stakeholders against the importation of refined petroleum products.

Gillis-Harry, in an interview on Sunday, said the Nigerian Midstream and Downstream Petroleum Regulatory Authority is supposed to stop the issuance of import licenses for 180 days to prove the production capacity of the Dangote refinery.

He said, “Well, is there anybody that has landed imported fuel?”

When our correspondent informed him of the amount of litre imported in two days, the official replied, “I am surprised to hear that. I am very surprised to hear that because NMDPRA is the leader of the non-import agreement. The idea was to give the Dangote refinery 180 days to prove its production capacity.

“So I would be surprised if anybody is importing fuel now. Besides now, we have an industry stakeholder forum that was Inaugurated last week, which will direct happenings in the industry. There was an industry agreement that there should be no import, and Dangote was given a certain number of days to produce a certain quantity daily for us.”


But the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the non-import directive was a “mutual understanding” and not a binding agreement.

Ukadike, in an interview, stated, “There was no agreement like that, but it was a mutual understanding not to import. It was because, at the time, Dangote products were cheaper than imported ones.

“NMDPRA is supposed to give (licence to) anyone who can import at a cheaper rate. We all are looking at cheaper rates, and that is what is happening.”

Source: https://punchng.com/Marketers-May-Dump-Dangote-Fuel-As-Imported-Petrol-Costs-N922/litre

Was it not the same thing we have been saying since last year? …that both Dangote and NNPC are fuel importers and want marketers to buy from them but it’s not easy to outsmart marketers like that. If the refineries are working like they have bandied about, they would have been selling cheaper, just common sense

Dangote should reduce his prices to discourage importation though reducing his prices to the barest minimum. His greed will surely increase the number of refineries and thereby forcing the prices down.

I'm still wondering why dangote can not bring down his price to between 600 - 700

aariwa:
Was it not the same thing we have been saying since last year? …that both Dangote and NNPC are fuel importers and want marketers to buy from them but it’s not easy to outsmart marketers like that. If the refineries are working like they have bandied about, they would have been selling cheaper, just common sense

Even common sense is scared of you lol

Expect a massive price slash from Dangote anytime soon

Between Dangote, oil marketers, and Nigerian government, none of them have the best interest of Nigerians in their heart.

I have realised that in Nigeria, anything called "local production\product" is always a scam, take rice, Dangote products for example, they are far more expensive than imported ones . I suspected dangote planned scamming Nigerians in collaboration with the Nigerian govt the moment he said he was waiting for the govt to fix prices for his own product

The dangote refinery doesn’t work. It’s a scam.

Explain to me how imported fuel at this high exchange rate will be cheaper than “Dangote” fuel? How?

The simple answer is Dangote also import! His refinery is a scam.

Oil business is not for the faint hearted, dangote this one no be cement

As if it will reflect on the retail prices. All of them are so greedy. But trust dangote to outsmart them. He may slash his own price any moment sighting international price fluctuations and spoiling some shows for them.

Typical Nigerian situation.

How can imported pms be cheaper than locally refined pms when the raw material is located in the same country?

Like I have always said, subsidy removal is never an end in itself, but a means to an end

The moment apc and bat made removal of subsidy an end in itself, that was when I knew that they did not know what they are doing.

You do not remove subsidies without first sanitising the sector and removing the corruption, bottlenecks and inefficiencies hindering the system, mapping out clear objectives of what is to be achieved by subsidy removal, factor in the socioeconomic impact on the common man and lastly, you must walk the talk, if the people must go through the pain of subsidy removal, political office holders must go through the same thing.

PriceActionZ:
As if it will reflect on the retail prices. All of them are so greedy. But trust dangote to outsmart them. He may slash his own price any moment sighting international price fluctuations and spoiling some shows for them.

Just imagine the stupidity of APC governance

Fighting against a private man with his own private business 😔 after Dangote opened his refinery NNPC suddenly rejuvenated 2 of their allegedly moribund ones . . . So that they can start having a 'price war' with Dangote at the detriment of the Nigerian masses.

APC is a demonic party with jinns as politicians

Freedom of choice

.

The same marketer that said fuel my come down to 500

adenigga:
Source: https://punchng.com/Marketers-May-Dump-Dangote-Fuel-As-Imported-Petrol-Costs-N922/litre

Same way imported rice is cheaper than local ones

tollyboy5:
Even common sense is scared of you lol

same way common sense eluded the morons that gave birth to you lol

adenigga:
Source: https://punchng.com/Marketers-May-Dump-Dangote-Fuel-As-Imported-Petrol-Costs-N922/litre

I agree with Mr Ukadike. If imports are cheaper, you import. No mutual understanding can trump that.

aariwa:
Was it not the same thing we have been saying since last year? …that both Dangote and NNPC are fuel importers and want marketers to buy from them but it’s not easy to outsmart marketers like that. If the refineries are working like they have bandied about, they would have been selling cheaper, just common sense

What about quality?

TBh, I don't think Nigerians like quality, that's why Chinese products dey reign.

SeeWahala:
Just imagine the stupidity of APC governance

Fighting against a private man with his own private business 😔 after Dangote opened his refinery NNPC suddenly rejuvenated 2 of their allegedly moribund ones . . . So that they can start having a 'price war' with Dangote at the detriment of the Nigerian masses.

APC is a demonic party with jinns as politicians

This post makes no sense. A price war always favours the consumer.

Wash, Dem no get shishi to import anything

Dey play na

Mjshexy:
I'm still wondering why dangote can not bring down his price to between 600 - 700

because of the different grade of dangotes fuel and imported ones.

That's just my opinion, not fact

Who actually cares

Mjshexy:
I'm still wondering why dangote can not bring down his price to between 600 - 700

Really?

Is there any country in the world that sells unsubsidized petrol at the equivalent of N600 per liter?

COMPAQ:
Leave folks to be hoping against hope. Better face their reality and make adjustments necessary to survive at this times. I know it isn't easy, but its true we have all been living fake lives for too long.

Nothing more to add.

aariwa:
Was it not the same thing we have been saying since last year? …that both Dangote and NNPC are fuel importers and want marketers to buy from them but it’s not easy to outsmart marketers like that. If the refineries are working like they have bandied about, they would have been selling cheaper, just common sense

Wahala

Quality...?

But you have standard organization of NIGERIA at the Port of entry and you are talking Standards?

Dangotes cement is the most expensive but he gets 100% of his materials here. He imports industrial Sugar and has a massive sugar plantation in Brazil.

You are just a passenger in a vehicle powered by useless thieving politicians and their business partners.

Keep waiting for Petroleum prices to go down, when Dangote needs to repay all loans used in building the refinery.

ArcFresky:
What about quality?

TBh, I don't think Nigerians like quality, that's why Chinese products dey reign.

Dangote too will slash

Ddeliverer007:
The dangote refinery doesn’t work. It’s a scam.

Explain to me how imported fuel at this high exchange rate will be cheaper than “Dangote” fuel? How?

The simple answer is Dangote also import! His refinery is a scam.

Dumbest response of all!!

Adebayo80677:

https://www.youtube.com/watch?v=HbTwp3Ewzys?si=d18UskJ_yKdZVOwU.

She cover her face everyday to school to hide her eyes

Get a better AI voice, preferably African voice and more realistic voice.

Try eleven lap

Take out all the whites pictures and hospital, you're making a Nigerian story, your voice and images should be relatable

aariwa:
Was it not the same thing we have been saying since last year? …that both Dangote and NNPC are fuel importers and want marketers to buy from them but it’s not easy to outsmart marketers like that. If the refineries are working like they have bandied about, they would have been selling cheaper, just common sense

@bolded You deserve heavy knocks on the head