The cost of importing Premium Motor Spirit (PMS), popularly known as petrol, has now surpassed the price of fuel supplied by the Dangote Petroleum Refinery, adding fresh momentum to calls for the Federal Government to end petrol importation and strengthen local refining. The latest pricing trend suggests that marketers now pay more for imported fuel than they would by sourcing directly from the 650,000-barrels-per-day Dangote Refinery in Lekki, a development many industry stakeholders believe could reshape Nigeria’s downstream petroleum market.
According to the latest Energy Bulletin released by the Major Energies Marketers Association of Nigeria (MEMAN), the landed cost of imported petrol reached ₦1,223.32 per litre as of July 29. This is higher than the Dangote Refinery’s gantry price of ₦1,215 per litre, while its coastal price stood at ₦1,195 per litre. The report also noted that Brent crude averaged $90 per barrel, with the naira trading at an average of ₦1,367.03 to the US dollar during the review period. Rising global crude oil prices and exchange rate pressures have continued to push up the cost of imported refined petroleum products.
The latest figures appear to validate the position of the Independent Petroleum Marketers Association of Nigeria (IPMAN), which has repeatedly urged the Federal Government to stop issuing petrol import licences. IPMAN argues that Nigeria’s growing local refining capacity, led by the Dangote Refinery, is now capable of meeting domestic demand. According to the association, continued fuel importation places unnecessary pressure on the country’s foreign exchange reserves, creates price instability, and weakens investments in local refining projects that are expected to drive long-term energy security.
The pricing report also highlighted a broader increase in the cost of refined petroleum products. Diesel’s landed cost climbed to ₦1,739.96 per litre, significantly higher than its 30-day average of ₦1,427.00, while aviation fuel rose to ₦1,616.43 per litre, compared to its previous average of ₦1,421.10 per litre. Across petroleum depots nationwide, marketers continued adjusting ex-depot prices in response to changing market conditions, with several operators reducing prices slightly while others recorded modest increases, reflecting the ongoing volatility in the downstream sector.
Despite these adjustments, retail petrol prices remain high, hovering between ₦1,250 and ₦1,300 per litre in Lagos and Ogun States, with motorists in northern and more remote regions paying even higher prices. Industry analysts believe the latest cost comparison strengthens the case for prioritising locally refined fuel over imports. If sustained, the trend could reduce Nigeria’s dependence on imported petrol, conserve foreign exchange, improve supply stability, and encourage further investment in domestic refining capacity, ultimately benefiting both the economy and consumers.
source: punch
