Fuel Prices May Drop Nationwide as Imported Petrol Becomes Cheaper

Petroleum products marketers have said petrol prices may fall across Nigeria in the coming days following a drop in the cost of imported fuel below the gantry price of the Dangote Refinery.

The President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, disclosed this in an exclusive interview with DAILY POST on Monday.

His comments followed data released by the Major Energies Marketers Association of Nigeria, which showed that the average cost of imported petrol is now N77 per litre cheaper than Dangote Refinery’s gantry price of N799 per litre. Meanwhile, Dangote Refinery had last week urged marketers to boycott coastal petrol, claiming it was N75 more expensive.

The situation has created a fresh dilemma for petrol marketers as debates over price parity continue.

Despite this, petrol pump prices in Abuja currently range between N839 and N905 per litre. However, checks by DAILY POST revealed that some filling stations in Lagos have reduced their prices to as low as N817 per litre. This is lower than the N839 per litre sold at Dangote-backed MRS Oil Nigeria filling stations.

The development has raised expectations that the price reduction could spread nationwide.

Commenting on the situation, Maigandi said that if the current market conditions are sustained and supported by the right environment, retail petrol prices could be reduced across the country.

He added that about 80 per cent of IPMAN members currently source their petrol from Dangote Refinery. According to him, differences in logistics and transportation costs are responsible for variations in fuel prices nationwide.

Maigandi explained that marketers purchasing more than two million litres enjoy a discount of N20 per litre, while those buying five million litres or more receive a discount of N25 per litre, although the base gantry price remains N799 per litre.

He said marketers in Lagos currently sell petrol between N820 and N825 per litre, while prices in Abuja range from N870 to N875 per litre due to transportation distance and logistics.

Maigandi also noted that increased competition would help drive prices down further. He said the country currently relies on one functional refinery, but additional refineries and increased imports would introduce competition and likely lead to lower fuel prices.

In January, Dangote Refinery raised its gantry price from N699 to N799 per litre, which resulted in higher petrol prices nationwide. In December last year, Aliko Dangote, the president of the 650,000-barrel-per-day refinery, had promised that fuel prices would be reduced to N739 per litre, a target that was not achieved by most filling stations.

As of Monday evening, global crude oil prices stood at $64.36 per barrel for West Texas Intermediate and $69.15 per barrel for Brent crude.