Revealed: How reduced landing cost may affect petrol prices in Nigeria

• The existent landing outgo is cheaper than the terms offered by Dangote Refinery and NNPC
• The improvement whitethorn pb to different downward terms adjustments by the 2 biggest players successful the downstream lipid sector
• The improvement whitethorn pb to different downward terms adjustments by the 2 biggest players successful the downstream lipid sector

Legit.ng’s Pascal Oparada has reported connected tech, energy, stocks, concern and the economy for implicit a decade.

The landing outgo of imported petrol dropped to N797 per litre connected Monday, March 17, 2025, amid plans by petroleum merchandise marketers to reduce petrol purchases from Dangote Refinery.

The terms clang comes pursuing the raging terms warfare successful the downstream petroleum industry betwixt the mega Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC).

Dangote Refinery and NNPC to prosecute successful different terms warfare arsenic landing outgo crashes. Credit: Bloomberg/contributor
Source: Getty Images

Dangote whitethorn set prices again

Legit.ng earlier reported that a caller landing outgo led the Lekki-based refinery to softly instrumentality another terms slash from N825 per litre to N815.

The N10 terms quality sparked different circular of contention among backstage depot owners, forcing them to set prices downward to support marketplace competition.

Experts person said the continued diminution successful petrol prices has caused monolithic losses for lipid marketers and importers, who person mislaid an estimated N2.5 cardinal regular and N75 cardinal monthly.

“Petroleum merchandise prices are susceptible to planetary politics. Right now, the renewed hostility successful the Middle East whitethorn origin different spike successful crude lipid prices, which whitethorn pb to a hike successful petrol prices, Adeola Yusuf, Energy argumentation expert said.“So, the existent landing outgo reflects the crude lipid prices arsenic of past week. The dynamics whitethorn displacement successful the coming days,” helium said. 

Marketers tally losses

Amid the increasing losses, the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN) has called for an involution from manufacture regulators to mandate substance terms adjustments each six months.

The nationalist vice president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Hammed Fashola, disclosed that portion the terms warfare betwixt Dangote and NNPC has been beneficial to Nigerians, it has impacted negatively connected marketers, causing uncertainties successful the market.

The incessant terms reductions person besides forced marketers to set prices aggregate times, starring them to trim the measurement of PMS purchases.

However, the latest competency centre information released by the Major Energies Marketers Association of Nigeria (MEMAN) shows that petrol importers paid N797.66 to import PMS into Nigeria.

According to the dealers, the N797.66 per litre on-spot estimated import parity into tanks is considered an N20.16 simplification from the N917.82 past week.

Market watchers are expecting different terms accommodation from Dangote Refinery and NNPC.

Punch reports that the MEMAN papers shows that on-the-spot income astatine the NPSC-NOJ terminal crashed by 797.73 per litre connected Friday, March 14, 2025, portion the mean outgo for 30 days besides reduced to N851.76 from N854.15 per litre.

According to the MEMAN document, Brent crude terms was benchmarked astatine $70.58 per barrel, from $69.88 connected Friday, March 14, 2025, with an speech complaint of N1,517.93 to a dollar.

Crude lipid prices emergence marginally

Marketers calculated the terms based connected 38,000 metric tonnes.

The information noted that planetary petroleum merchandise pricing is experiencing volatility owed to tensions successful the Middle East, China’s marketplace dynamics, seasonal variations, accumulation status, and planetary interferences.

MEMAN noted that the speech has stabilised relatively, with minimal fluctuations seen successful caller times.

Landing outgo simplification to pb to different terms warfare betwixt Dangote and NNPC. Credit: Bloomberg/Contributor
Source: Getty Images

Landing outgo is apt to alteration respective times successful the time owed to the elements.

“Savings tin beryllium achieved done negotiations, entree to overseas exchange, and logistics efficiencies, e.g., eliminating STS wherever imaginable oregon receiving larger cargos,” MEMAN said.

Dangote Refinery counts losses aft petrol terms crash

Legit.ng earlier reported that the Dangote Refinery is projected to person lost astir N32.5 cardinal due to the caller petrol terms clang from the 500 cardinal litres of PMS banal astatine the plant's gantry.

Before announcing the terms slash, the president of the Dangote Group, Aliko Dangote, disclosed that the mega installation had implicit 500 cardinal litres of petrol successful stock.

The mentation came erstwhile the installation sold petrol astatine N890 per litre.

PAY ATTENTION: Сheck retired quality that is picked exactly for YOU ➡️ find the “Recommended for you” artifact connected the location leafage and enjoy!

Source: Legit.ng