The landing cost of Premium Motor Spirit (PMS) in Nigeria has dropped to N774.82 per litre, making it cheaper than the ex-depot price of Dangote Refinery’s fuel, which remains at N825 per litre.
This development was revealed in the latest competency centre daily energy data released by the Major Energies Marketers Association of Nigeria (MEMAN) on Tuesday.
According to MEMAN data, the estimated import parity into tanks has significantly reduced to N774.82 per litre, marking a decrease of N152.56 or 16.5% from the N927.48 per litre recorded on February 21, 2025. This decline is attributed to the continued drop in global oil prices.
As of Wednesday morning, March 12, 2025, Brent Crude had fallen to $70 per barrel, while US West Texas Intermediate (WTI) stood at $66.70 per barrel.
This represents a drop from approximately $76 and $69 per barrel, respectively, in February. The decline in global crude prices has led to a corresponding reduction in fuel import costs, making petrol more affordable for consumers.
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The drop in landing cost suggests that petrol prices may soon decrease further, potentially reaching around N800 per litre. Currently, the lowest retail prices in Lagos and Abuja are between N860 and N880 per litre. If the trend continues, fuel prices may become more competitive in the coming days.
At the beginning of March 2025, both the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery reduced their petrol retail prices to N860 and N880 per litre in Lagos and Abuja, respectively.
The latest decline in fuel import landing cost is expected to intensify competition between Dangote Refinery, NNPC, and independent fuel importers.
Commenting on the price drop, the spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, noted that petrol prices could potentially fall to N800 per litre.
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“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. It is possible that we may see fuel prices at N800 per litre,” Ukadike stated.
Earlier, the President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, emphasized the need for a petrol price stability framework to mitigate losses for retailers and marketers.
Speaking during a meeting with the Nigerian Petroleum Minister of State, Heineken Lokpobiri advocated for a diversified supply of petrol to foster a competitive and stable market.
“This will drive healthy competition and ensure that our domestic prices do not exceed import parity, thereby providing the best affordability with sustainability,” Gillis-Harry stated.
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Despite Dangote Refinery’s commencement of fuel production, Nigeria remains heavily reliant on fuel imports due to concerns over market competition, pricing dynamics, and the country’s inadequate petrol production capacity.
According to recent data from the National Bureau of Statistics (NBS), Nigeria’s petrol imports surged by 105% to N15.4 trillion by the end of 2024. This underscores the persistent dependence on imported fuel despite efforts to boost local refining capacity.