The landing cost of imported premium motor spirit (PMS) has surged to N885 per litre, intensifying pressure on pump prices across Nigeria and raising concerns about a potential spike to N1,000 per litre at retail outlets.
According to the daily energy bulletin published by the Major Energy Marketers Association of Nigeria (MEMAN) on Wednesday, the latest figure showed an increase of N88 from last week’s N797 per litre.
The rapid escalation in landing cost is attributed to sustained forex volatility, global crude oil price fluctuations, and logistic overheads.
Industry analysts warn that the rising cost of imports is likely to push retail prices closer to the psychological N1,000 mark, especially in areas already experiencing supply strain.
Current pump prices for imported fuel range between N940 and N970 per litre, with fresh adjustments expected in the coming days if the cost trajectory continues.
Meanwhile, comparisons with domestic supply reveal a narrowing competitive advantage.
Petrol sourced from Dangote Refinery, Nigeria’s newest and largest private refining facility, is priced at N815 ex-depot and sold at retail for between N860 and N880 per litre in select MRS filling stations across Lagos and Abuja.
However, recent developments around Dangote Refinery’s pricing model have further complicated the downstream outlook.
The refinery reportedly suspended sales of petroleum products in naira last week, opting instead for dollar-denominated transactions.
This shift, market participants say, could alter the company’s pricing template and eliminate what has been a cost buffer for domestic buyers.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has appealed for calm amid growing public anxiety and sporadic queues at fuel stations.
The association urged the Federal Government to sustain its naira-for-crude oil supply arrangement with Dangote Refinery to ensure pricing stability and prevent further market distortion.
“Reports linking Dangote’s temporary halt in naira-based transactions to recent panic buying are not entirely accurate,” PETROAN said in a public advisory. “We encourage Nigerians to remain calm while stakeholders engage on practical solutions to address current pricing dynamics.”
The downstream sector continues to battle structural inefficiencies, foreign exchange challenges, and a highly sensitive pricing environment.
Stakeholders have explained the need for policy clarity, competitive balance between importers and local producers, and consistent forex access to support the supply chain.
