The cost of importing Premium Motor Spirit (PMS) into Nigeria has surged to N1,182.50 per litre, driven by a combination of climbing crude oil prices, sharply higher ocean freight rates, and renewed pressure on the naira, according to data from the Major Energies Marketers Association of Nigeria (MEMAN).
Landing Cost Rises by N47.78 in Six Days
Successive energy bulletins from MEMAN showed that the estimated import parity price moved from N1,134.72 per litre on July 9 to N1,182.50 per litre by July 15, a rise of N47.78 per litre in just six days. A secondary benchmark tracked by the association recorded a similar climb, from N1,135.73 to N1,183.50 per litre over the same period.
Key Drivers: Crude, Freight, and Forex
MEMAN's data pointed to rebounding global crude prices as the primary factor behind the rising landing cost. The association's seven-day average placed Brent crude at $79.64 per barrel and West Texas Intermediate at $75.65 per barrel, up from $73.71 and $70.41 per barrel respectively the previous week. Shipping costs added further pressure. Figures from S&P Global Commodity Insights showed freight rates for clean petroleum products moving from Northwest Europe to West Africa surged approximately 25%, from $29.70 per metric tonne at the end of June to $37.12 per metric tonne. The increase was attributed to tighter vessel availability after ships were diverted to alternative routes following renewed security concerns around the Strait of Hormuz. Foreign exchange also played a role, with MEMAN's average exchange rate edging from N1,373.47 per dollar to N1,379.68 per dollar during the review period.
Depot Prices Rise Across Key Supply Hubs
The higher import costs have already worked their way through to wholesale prices. In Lagos, ex-depot prices for PMS rose to between N1,120.00 and N1,200.00 per litre by July 15, compared with a range of N1,072.00 to N1,075.50 per litre on July 9. Port Harcourt depots were pricing between N1,230.00 and N1,245.00 per litre, while Warri and Calabar hubs recorded prices of N1,200.00 to N1,230.00 per litre. Industry analysts warned that wholesale prices could remain elevated in the weeks ahead if crude oil values and freight charges hold at current levels.
Market Adjustments and Dangote Refinery Impact
The MEMAN report also noted that the downstream market continues to adjust to Dangote Petroleum Refinery's shift to dollar-denominated sales for petroleum products, a development that has reshaped how marketers calculate replacement costs. Earlier, the National Bureau of Statistics (NBS) reported that Nigeria's import bill for petrol decreased significantly by N87.401 billion in the first quarter of 2026. Data from the bureau's 'Foreign Trade Statistics Q1 2026' showed that the total value for petrol imports fell from N2.271 trillion to N87.401 billion, a 96.2% decrease compared to the same period in 2025. Despite rising depot prices across Lagos, Port Harcourt, and Warri, Nigeria retained the lowest petrol retail price in West Africa.
