The landing cost of imported Premium Motor Spirit (PMS), commonly known as petrol, has risen to approximately N1,167 per litre, which is just N2 above the N1,165 per litre price offered by the 700,000-barrel-per-day Dangote Petroleum Refinery. This narrow gap, reported by Legit.ng, highlights the increasingly competitive position of locally refined petrol in Nigeria's downstream market.
Recent checks show that private depots across Nigeria are slashing their prices to remain competitive, with several operators reducing rates after earlier climbs to as high as N1,200 per litre. Industry data indicate that some depots have now lowered their prices to around N1,180 per litre, bringing them much closer to Dangote's rate.
Diesel and Aviation Fuel Show Wider Price Advantages
The price advantage of local refining is more pronounced in other petroleum products. Automotive Gas Oil (AGO), commonly known as diesel, is reportedly sold by Dangote Refinery at N1,570 per litre, while imported diesel has a landing cost of approximately N1,640.87 per litre, a difference of N70.87 per litre in favour of the local refinery.
Aviation fuel also shows a substantial gap. The landing cost of imported aviation fuel stands at about N1,536.23 per litre, compared with N1,353.75 per litre from Dangote Refinery. Meanwhile, Dangote has also reduced the price of liquefied petroleum gas, commonly known as cooking gas, with its product reportedly selling at N925,000 per metric tonne.
Depots Cut Petrol Prices as Competition Intensifies
The pressure is spreading across private petroleum depots. Among the depots recording lower prices are Soroman at N1,189 per litre, SOBAZ at N1,180, Pinnacle at N1,167, FYNEFIELD at N1,180 and Pivot at N1,180 per litre. These reductions could provide some relief for fuel marketers and consumers, particularly if the lower depot prices translate into cheaper pump prices at filling stations.
Marketers said the exchange rate used in calculating import parity prices stood at approximately N1,362.53 to the dollar. According to industry sources, relative stability in the naira-dollar exchange rate has contributed to the recent moderation in petrol and other petroleum product prices.
Exchange Rate and Crude Oil Volatility Impact Future Prices
Because imported fuel costs are heavily influenced by foreign exchange rates, crude oil prices and international shipping expenses, movements in any of these factors can quickly affect local pump prices. International crude oil prices have remained volatile amid renewed geopolitical tensions involving Iran and the United States and concerns surrounding the strategic Strait of Hormuz.
Recent market data showed Brent crude at $88.52 per barrel, West Texas Intermediate (WTI) at $82.40 and Murban crude at $89.42 per barrel. Analysts expect uncertainty to persist in the global oil market as tensions around the Strait of Hormuz continue to threaten the stability of crude supplies and shipping routes.
For Nigerian motorists and households, the immediate focus remains on whether falling depot and landing costs will eventually translate into further reductions at filling stations and lower energy costs nationwide. The growing price competition between imported fuel, private depots and Dangote Refinery could reshape Nigeria’s downstream petroleum market, particularly as local refining capacity continues to expand.
Legit.ng earlier reported that Nigerians could face another round of petrol price increases after the Dangote Refinery raised its ex-gantry petrol price, triggering fresh upward pressure across the downstream petroleum market. The 700,000-barrels-per-day Dangote Refinery increased its petrol price by N15.50, from N1,150 to N1,181 per litre, as international crude oil prices approach $90 per barrel amid growing concerns over global energy supply.
