News Update
THE landing cost of premium motor spirit dropped to N774.82 per litre, cheaper than the ex-depot price of Dangote Refinery’s fuel, which stood at N825 per litre.
This is according to the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria on Tuesday.
Data from MEMAN indicates that estimated import parity into tanks has reduced to N774.82 per litre, a reduction of N152.56 or 16.5 percent from the N927.48 per litre quoted on February 21, 2025 regarding petrol.
The development comes as global oil price drop persists.
For instance, Brent Crude lowered to $70 and US WTI $66.70 as of Wednesday morning, 12 March, 2025, compared to around $76 and $69 in February.
The price drop in global crude price made fuel import costs fall to N774.82 per litre, according to MEMAN’s data.
This means fuel price may drop further to around N800 per litre, down from the lowest retail prices of N860 and N880 per litre in Lagos and Abuja in the coming days.
Recall that in the beginning of March and last month, the Nigerian National Petroleum Company Limited and Dangote Refinery reduced their petrol retail prices to N860 and N880 per litre in Lagos and Abuja.
The latest drop in fuel import landing cost will further aggravate the price war between Dangote Refinery, NNPC, and fuel importers.
Reacting, the spokesperson of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said petrol prices may fall to N800 per litre.
“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre.”
Earlier, the President of the Petroleum Retailers Outlets Owners Association of Nigeria, Billy Gillis-Harry, in a meeting with the Nigerian Petroleum Minister of State, Heineken Lokpobiri, advocated for a petrol price stability framework to guard against losses incurred by both petrol retailers and marketers.
He further urged for healthy competition in the petroleum downstream sector through a multiplicity of petrol sources.
“This will drive healthy competition and guarantee that our domestic prices will not exceed import parity, thereby ensuring the best possible affordability with sustainability,” he said.
Recall that petrol retailers and marketers cited fear of healthy market competition, competitive pricing, and inadequate petrol production capacity as reasons for the product’s continued import despite Dangote Refinery’s fuel production.
This comes as the National Bureau of Statistics’ foreign trade data shows that petrol imports surged by 105 percent to N15.4 trillion at the end of 2024.