Dangote Refinery may be compelled to slice its fuel price further to stay competitive as the landing cost of refined petroleum has dropped to N774.82 per litre, cheaper than Dangote’s ex-depot price of N825 introduce last month.
The latest data released by the Major Energies Marketers Association of Nigeria (MEMAN) shows that estimated import parity into tanks has reduced to N774.82 per litre, or by N152.56 (16.5 per cent) from N927.48 quoted on February 21.
This comes as global oil price drop continues, with Brent Crude slashed to $70 and US WTI $66.70 on Wednesday morning compared to around $76 and $69 in February.
The reduction in global crude price also depressed Nigeria’s fuel import cost to N774.82 per litre, according to MEMAN data.
The implies that, in the coming days, fuel price may dip further to around N800 per litre, from the current N860 in Lagos and N880 in Abuja effected in late February and early this month by Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC).
Independent Petroleum Marketers Association of Nigeria (IPMAN) spokesperson Chinedu Ukadike told Daily Post that “crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre.”
However, Petroleum Retailers Outlets Owners Association of Nigeria (PROOAN) President Billy Gillis-Harry, at a recent meeting with the Minister of State (Petroleum) Heineken Lokpobiri, sought a fuel price stability framework to guard against losses to both retailers and marketers.
He advocated for a healthy competition in the petroleum downstream sector through multiple petrol sources.
“This will drive healthy competition and guarantee that our domestic prices will not exceed import parity, thereby ensuring the best possible affordability with sustainability,” he said.
Petrol retailers and marketers have cited fear of healthy competition, competitive pricing, and inadequate production capacity as reasons for continued importation despite output from Dangote and other local refineries.
National Bureau of Statistics (NBS) foreign trade data shows that petrol imports grew 105 per cent to N15.4 trillion in 2024.
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