Oil marketers say the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has decreased to N922.65 per litre as of Friday, January 24, 2025.
This marks a N32.35 reduction from the N955 per litre price at the loading gantry of the Dangote Petroleum Refinery.
This decrease in landing cost—factoring in shipping, import duties, and exchange rate impacts—signals a potential shift in market dynamics.
Industry analysts say this could be an incentive for marketers to return to importing petrol, given the improved profit margins.
Last week, the Dangote Petroleum Refinery attributed the rise in petrol prices from N899.50 per litre to N955 to higher crude oil costs, the primary input for refining petroleum products.
However, the recent dip in landing costs reflects easing pressures from global market fluctuations and supply chain issues.
Despite the reduction, the retail price of petrol in Nigeria remains high, with major marketers selling between N990 and N1,010 per litre in the Federal Capital Territory (FCT).
According to data released by the Major Energy Marketers Association of Nigeria (MOMAN) last week, the on-spot estimated import parity into tanks stood at N922.65 per litre, down by N21 or 2.2% from the N943.75 recorded on Thursday.
However, the 30-day average cost of imported petrol increased to N939.52 per litre on Friday, rising from N929.07 on Thursday and N900.74 on Tuesday.
The data also highlighted that Brent crude oil was priced at $78.29 per barrel, a slight drop from $78.88 the previous day.
The exchange rate was recorded at N1,550 per dollar, underscoring the continued influence of currency fluctuations on petrol pricing.
Analysis of depot pricing revealed a downward trend, with several private depots adjusting their rates:
Nipco: Reduced from N970 to N965 per litre during the week.
Aiteo and Sahara: Both closed the week at N960, with Sahara implementing a N20 reduction from its earlier price of N980.
Swift: Opened at N970 and closed at N960.
Wosbab and AA Rano: Both closed at N960 per litre.
In Port Harcourt, Bulk Strategic Depot reduced its price by N24, closing at N981 from N1,005 earlier in the week.
Depots in Delta and Calabar maintained a range between N972 and N990 per litre.
Fresh findings indicate that oil marketers imported 57,301 metric tonnes of petrol between January 21 and January 22, 2025.
At a conversion rate of 1,341 litres per metric tonne, this translates to 76.84 million litres of petrol imported within two days.
The updated landing costs and depot pricing suggest a more favorable environment for stakeholders in the downstream oil and gas sector.
However, the industry remains susceptible to exchange rate volatility and freight costs, which continue to impact pricing and profitability.
The decrease in landing costs is expected to alleviate some pressure on consumers while providing an opportunity for importers and independent marketers to achieve better margins.
