Oil Marketers Express Concern as Imported Petrol Costs Surge to N1120 Per Litre, Eyes Turn to Dangote Refinery....KINDLY READ THE FULL STORY HERE▶

Oil marketers in Nigeria are growing increasingly concerned about the potential pricing of Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery. This concern comes as the landing cost of imported petrol has surged to approximately N1120 per litre.

The recent jump in landing costs, reported at N1117 per litre in July, has intensified pressure on dealers to consider alternative sources for their petrol supplies. During this period, pump prices fluctuated between N600 and N700 per litre, and just last week, prices spiked to between N855 and N897 per litre, marking a steady upward trajectory. Some independent dealers have even raised their prices beyond the N1,000 per litre mark.

A major point of uncertainty stems from the delay in announcing the price for petrol from Dangote’s refinery. This has fueled discussions among marketers about partnering with foreign entities to explore the feasibility of importing petrol. Given the open market for competition, this move is being seen as a potential solution to the rising cost concerns.

Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that the association is in talks with international partners to assess the financial viability of importing PMS.

“If Dangote’s pricing turns out to be higher than import costs, marketers may opt to bring in petrol from abroad to stay competitive,” Maigandi shared with PUNCH. “We are actively evaluating import costs with our foreign partners while awaiting Dangote’s pricing. The open market allows us to source where prices are more favourable.”

Maigandi also highlighted that increased competition from multiple petrol importers would lead to better product availability and more competitive prices for consumers across the country.

In response to the concerns, a Dangote Group official, who requested anonymity, assured that Alhaji Aliko Dangote is committed to providing competitive prices for Nigerian consumers. The official stressed that Dangote intends to sell PMS within Nigeria, regardless of whether the Nigerian National Petroleum Company Limited (NNPCL) chooses to act as an off-taker.