Oil marketers in Nigeria have revealed that the landing cost of Premium Motor Spirit (PMS) has dropped to N922.65 per litre, making it N32.35 cheaper than the N955 per litre offered by the Dangote Petroleum Refinery.
The reduction in landing costs, which include expenses such as shipping, import duties, and exchange rates, is expected to renew marketers’ interest in fuel importation.
A major oil marketer stated, “The lower cost of imported petrol is often an incentive to dealers, and you won’t blame marketers who import the product.”
Data from the Major Energies Marketers Association of Nigeria (MOMAN) shows that the spot import parity cost declined by 2.2% from N943.75 per litre on Thursday to N922.65 per litre on Friday. Despite this, retail outlets in the Federal Capital Territory (FCT) continue to sell petrol at N990–N1,010 per litre.
The drop in landing costs reflects global market trends, as Brent crude oil prices fell to $78.29 per barrel on Friday from $78.88 the previous day. However, the exchange rate of N1,550 per dollar continues to challenge importers.
Between January 21 and 22, 2025, oil marketers imported 57,301 metric tonnes of PMS, equivalent to 76.84 million litres, into Nigeria. The vessels, managed by Tera Shipping Limited and Peak Shipping Agency Nigeria Limited, arrived at Apapa and Tincan ports in Lagos.
Two additional vessels also docked at the Dangote terminal in Lekki Deep Seaport, though their capacities were not disclosed.
The development has drawn reactions within the industry. National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, expressed surprise, citing an earlier agreement to halt fuel imports for 180 days to allow the Dangote refinery to establish production capacity.
“There was an industry agreement that there should be no importation, and Dangote was given a certain number of days to prove its production capacity,” he said.
National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, clarified that the directive was a “mutual understanding” rather than a binding agreement. He explained, “There was no formal agreement. The idea was to prioritize cheaper rates, and that is why marketers are importing.”
Depot prices also reflected reductions. Nipco sold PMS at N970 per litre, down from N965 earlier in the week. Aiteo and Sahara closed at N960 per litre, while Port Harcourt’s Bulk Strategic Depot reduced prices by N24 to N981 per litre. Depots in Delta and Calabar maintained prices between N972 and N990 per litre.
The recent reduction in PMS landing costs signals a potential easing of Nigeria’s fuel price challenges. However, global crude prices, exchange rates, and regulatory measures will continue to influence the downstream oil and gas sector.
