Operators in Nigeria’s downstream oil sector attribute the high cost of locally refined petrol to dollar-denominated charges on refining and crude importation. The Major Energies Marketers Association of Nigeria revealed that the landing cost of imported petrol as of December 5, 2024, was ₦958.89 per litre, while Dangote Refinery’s petrol cost ₦970 per litre, and Port Harcourt Refinery’s price was ₦1,030 per litre. Refinery operators argue that persistent dollar-based fees for jetty and pipeline usage inflate costs, despite calls for government agencies to adopt naira-based charges to alleviate the financial strain.
Stakeholders, including the Crude Oil Refinery Owners Association of Nigeria, criticized government agencies like NIMASA for dollarized fees, which affect trade and pricing. While the Federal Government mandated crude oil transactions in naira, downstream operators still face dollar-based charges for jetty and maritime services, leading to higher pump prices. Efforts are underway to align these charges with naira pricing, but implementation delays keep costs high. Operators urge the government to expedite reforms and align agency practices with policy directives to reduce petrol prices.
Meanwhile, the importation of crude oil further complicates cost dynamics. Industry players highlight fluctuating exchange rates and crude importation expenses as contributing factors to inconsistent petrol pricing. Oil marketers emphasize the importance of maintaining competitive sourcing options to manage costs. Despite challenges, stakeholders remain hopeful that ongoing reforms, including Dangote Refinery’s operations and policy adjustments, will stabilize petrol prices in Nigeria.