The landing cost of imported petrol in Nigeria has surged by ₦88 per litre in just one week, rising from ₦797 to ₦885 per litre, according to data from the Major Energies Marketers Association of Nigeria (MEMAN).
This increase places the new landing cost ₦25 higher than the ₦860 per litre retail price of Dangote petrol from MRS and other partners, and ₦70 above Dangote’s ex-depot price of ₦815 per litre.
Market Disruptions and the Naira-for-Crude Dispute
Recent petrol price declines—dropping from ₦1,000 per litre in January to ₦860 per litre—were driven by Dangote Refinery's price cuts. However, with rising import costs and a dispute over the naira-for-crude deal between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPCL), a petrol price hike is expected in the coming weeks.
Last week, Dangote Refinery suspended naira sales, citing misalignment between sales proceeds in naira and crude oil purchases in U.S. dollars. Following this, petrol loading costs at private depots in Lagos jumped from ₦850 to about ₦900 per litre.
Surge in Petrol Imports
The Nigerian Ports Authority (NPA) confirmed an increase in petrol importation, with seven vessels carrying 154.22 million litres of imported Premium Motor Spirit (PMS) arriving at ports across Lagos and Cross River State between March 17 and 23.
At the same time, Dangote Refinery imported 654,766 metric tonnes of crude oil within this period.
Concerns Over Dollar Sales for Petroleum Products
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has urged the Federal Government to prevent Dangote Refinery from selling petroleum products in dollars, warning that it could exacerbate inflation and pressure the economy.
"All transactions within the country should be conducted in naira to protect Nigeria’s economy and consumers," said Billy Gillis-Harry, PETROAN National President.
Meanwhile, the Depot and Petroleum Products Marketers Association of Nigeria (DPPMAN) also raised concerns, arguing that crude transactions should be in dollars to ensure stability and investment confidence.
MEMAN Supports Deregulation Despite Resistance
At the Q1 2025 Press Training & Engagement, MEMAN reaffirmed its support for the Petroleum Industry Act (PIA) and market deregulation, despite resistance from stakeholders accustomed to government price controls.
MEMAN CEO Clement Isong stated:
“A transition to a deregulated market is necessary for long-term economic growth. While challenges and resistance are expected, strong regulation and transparency will ensure success.”
The association urged continued oversight by regulatory agencies, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC), to maintain market stability and consumer protection.
What’s Next?
- Petrol prices are expected to rise due to higher landing costs and supply disruptions.
- More petrol imports are arriving, but uncertainty over Dangote’s naira-for-crude policy could impact supply.
- Government intervention on currency policies for petroleum sales remains a key issue.
Nigeria’s fuel market is at a crossroads, with deregulation promising long-term stability but causing short-term price volatility.