The land cost of premium motor spirit popularly known as petrol has declined by ₦32.35 from ₦955 per litre to ₦922.65 per litre.
The adjustment reflects shifts in global oil prices and exchange rate fluctuations, which significantly impact the cost of imported petrol.
A prominent marketer, speaking with Punch, stated, “The lower cost of imported petrol is often an incentive to dealers, and you won’t blame marketers who import the product.”
This development comes despite the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA)’s recent advocacy for a 180-day suspension of fuel imports to encourage reliance on locally refined products.
However, marketers have increasingly turned to imported fuel due to its competitive pricing.
The Dangote Refinery, initially positioned as a game-changer in Nigeria’s petroleum industry, has struggled to match the affordability of imported alternatives.
With a production capacity of 650,000 barrels per day, the refinery was expected to reduce the nation’s dependence on imports.
However, recent increases in the price of petrol at the refinery’s depot have raised concerns among stakeholders. Dangote Petroleum Refinery attributed the price hike to rising global crude oil prices and explained that crude oil directly affects the cost of the final product.
The preference for imported fuel highlights ongoing challenges in achieving self-sufficiency in Nigeria’s fuel refining sector.
Marketers argue that there are no binding agreements requiring them to prioritize locally refined products over cheaper imported alternatives.
Business Insider Africa recently reported that despite initial optimism surrounding Dangote Refinery’s operations, Nigerian oil marketers are increasingly relying on imports to meet consumer demand.
Industry analysts point out that the surge in imported fuel reflects broader structural issues, including the volatility of crude oil prices and the need for more competitive pricing in local refining.
