Marketers find imported petrol at N922/litre cheaper than Dangote product

Marketers find imported petrol at N922/litre cheaper than Dangote product

Oil marketers have disclosed that the landing cost of imported petrol dropped to N922.65 per litre as of Friday.

This shows a reduction of N32.35 from the N955 per litre offered at the loading gantry of the Dangote Petroleum Refinery.

The landing cost includes various expenses such as shipping, import duties, and exchange rates. The reduction in cost is anticipated to affect the retail price of petrol, potentially making it more affordable for consumers.

“The lower cost of imported petrol is often an incentive to dealers and you won’t blame marketers who import the product,” a major marketer, who spoke on condition of anonymity, stated.

Last Sunday, the Dangote Petroleum Refinery said the rise in petrol price from N899.50 was due to an increase in the cost of crude oil, the major component for refined petroleum products.

However, this latest decline in landing cost, which reflects the price of importing and distributing the product, signals some relief from the pressures of global market fluctuations and supply chain challenges.

But despite this reduction, the retail price of petrol in Nigeria has remained high, with major marketers continuing to sell refined products between N990 and N1,010 per litre in the Federal Capital Territory.

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According to the latest data by the Major Energies Marketers Association of Nigeria released on Friday, the on-spot estimated import parity into tanks was N922.65 per litre, a reduction of N21 or 2.2 per cent from the N943.75 per litre quoted on Thursday.

The average cost for 30 days rose to N939.52 per litre on Friday, up from N929.07 per litre on Thursday, and N900.74 per litre on Tuesday.

The document also noted that the price of Brent crude was benchmarked at $78.29 per barrel, down from $78.88 per barrel the previous day, with an exchange rate of N1,550 per dollar.

This cost is viewed as an improvement for importers, providing private depot owners and independent marketers with an alternative route to profitability and the opportunity to source cheaper products.

With the average ex-depot price across all locations ranging from N950 to N990 per litre, importers stand a chance to cover costs significantly lower than recent historical averages and generate sustainable margins.

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National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, said there was an agreement by stakeholders against the importation of refined petroleum products.

Gillis-Harry, in an interview on Sunday, said the Nigerian Midstream and Downstream Petroleum Regulatory Authority was expected to stop the issuance of import licences for 180 days to prove the production capacity of the Dangote refinery.

He said, “Well, is there anybody that has landed imported fuel?”

“So I would be surprised if anybody is importing fuel now. Besides now, we have an industry stakeholder forum that was inaugurated last week, which will direct happenings in the industry.

“There was an industry agreement that there should be no import, and Dangote was given a certain number of days to produce a certain quantity daily for us.”

But the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, said the non-import directive was a “mutual understanding” and not a binding agreement.

Marketers find imported petrol at N922/litre cheaper than Dangote product

(Punch)