Imported Petrol Landing Cost Decreases to N900 per litre

The projected cost to import Premium Motor Spirit (PMS), also known as petrol, into Nigeria has significantly decreased by N36, resulting in a price of N900.28 per liter as of Thursday. 

Data from the Major Oil Marketers Association of Nigeria indicates that the landed cost has fallen from approximately N936.75 per liter—the cost incurred by importers last Thursday—representing a 3.62 percent reduction. The price previously decreased to N890.43 earlier this week

Newly acquired data indicates that oil marketers imported 90,308 metric tonnes of fuel between Tuesday, December 10, 2024, and Friday, December 13, 2024.

Applying a conversion rate of 1,341 liters per metric tonne, this equates to approximately 121.1 million liters of petrol imported over a three-day period.

Decreased landing costs, encompassing import and distribution expenses, indicate some relief attributable to global market and supply chain improvements. However, Nigeria's retail petrol price remains at N1,060.

Crude oil and foreign exchange rates are the principal cost drivers for refined petroleum products, including petrol, diesel, aviation fuel, and kerosene.

This week, crude oil refiners and other stakeholders in the downstream sector indicated that the dollar charges on locally refined Premium Motor Spirit (PMS), commonly known as petrol, along with the expenses associated with importing crude oil, are significant factors contributing to the elevated prices of domestically produced petrol compared to imported alternatives.

According to dealers on Thursday, the price of petrol from the Dangote Petroleum Refinery was reported at N970 per litre. Additionally, oil marketers previously noted that the price for refined petrol from the Port Harcourt Refining Company stood at N1,030 per litre.

This situation implies that imported fuel, excluding regulatory fees, is more affordable than petrol refined locally.

An analysis of data from major marketers revealed that the daily spot price for estimated import parity into tank costs increased to N900.28 from N890 recorded on Wednesday. Furthermore, the 30-day average price decreased to N945.23 on Thursday, down from N946.38 on Wednesday and N958.89 from the previous week.

The benchmark price for Brent crude oil was set at $73.52 per barrel, up from $72.06 per barrel the day before, with an exchange rate of N1,533 per dollar. The ex-depot price range in Lagos remained between N970 and N1,050.

In response to the price decline, oil marketers have imported a total of 121.1 million litres to ensure adequate domestic supply.

Our correspondent, referencing documents from the Nigerian Port Authority on Thursday, noted that these products were delivered via four vessels that docked at various locations, including Apapa Port in Lagos State, Warri Ports, Onne Port in Rivers State, and Calabar Port in Cross Rivers State.

One major marketer, AYM Shafa, capitalizing on the lower prices, imported 15,000 metric tons, equivalent to 21.12 million litres of petrol, on Tuesday, December 10. The vessel, named Stellar, arrived at Warri Port at 12:01 am and was managed by Agent Peak Shipping.

A review of the documentation indicates that the vessel Kriti Ruby, carrying a cargo of 37,308 metric tons (50.03 million liters) of petrol, arrived at Apapa port at 14:06 on Thursday, December 12, 2024. West Atlantic Port Services represented the vessel, which was handled at the ASPM jetty terminal. Furthermore, the vessel St Lady Meenah arrived at Rivers port at 03:45 on the same day, delivering 23,000 metric tons (30.84 million liters) of PMS under the management of ULOB at the Bitumen Jetty.

The Virgo 1, carrying 15,000 metric tons (20.12 million liters) of refined fuel, is expected to arrive at Calabar port today, Friday, at 4:10 PM. Waps will manage the vessel's offloading at the Dozzy Oil and Gas Services Terminal. This import contradicts earlier statements from a marketers' group regarding the cessation of petrol imports in favor of focusing on domestic supply.