The landing cost of petrol in Nigeria has dropped to N774.72 per litre, leading to increased price competition in the downstream oil sector.
On Tuesday, major oil marketers responded by adjusting their pricing strategies, challenging the N825 per litre loading cost set by Dangote Petroleum Refinery.
Industry experts suggest that the declining cost of imported petrol could push pump prices down to around N800 per litre. The N50.28 per litre reduction in landing costs has encouraged dealers to favor imported products over locally refined petrol due to better pricing.
As a result, private depots have also adjusted their prices, with operators such as AA RANO, MENJ, and MRS TINCAN selling petrol between N830 and N832 per litre. In contrast, marketers purchasing from Dangote Refinery at N825 per litre are reselling at N835 per litre, making minimal profits.
The competitive pricing has driven marketers to seek alternative sources to maintain profit margins. Many now prefer private depots, where prices remain relatively stable compared to the fluctuating rates at Dangote Refinery. This shift raises concerns that Dangote may be forced to lower its ex-gantry price to retain customers.
Meanwhile, oil marketers have expressed concerns over the frequent fuel price reductions, warning that many businesses are incurring financial losses. The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has called for a regulatory framework to ensure price stability, proposing that adjustments only occur after a fixed period.
