The landing cost of petrol in Nigeria has dropped to N774.82 per litre, a 16.5% decrease, due to falling global crude oil prices. This could drive fuel prices lower, sparking competition between NNPC, Dangote Refinery, and importers. Experts predict a further drop to N800 per litre soon.
The cost of importing Premium Motor Spirit (PMS) into Nigeria has dropped significantly to N774.82 per litre, reflecting a 16.5% decrease from the N927.48 per litre recorded in February. This decline, driven by falling global crude oil prices, has sparked fresh discussions on potential fuel price reductions in the country.
According to data from the Major Energies Marketers Association of Nigeria (MEMAN), the drop in international crude prices—Brent Crude at $70 per barrel and U.S. WTI at $66.70—has contributed to lower fuel import costs. The new landing cost now undercuts the ex-depot price of N825 per litre set by Dangote Refinery, potentially intensifying competition in Nigeria’s petroleum sector.
Industry experts suggest that the price of fuel at retail stations could fall further, possibly to N800 per litre, down from the current N860-N880 per litre seen in Lagos and Abuja. However, questions remain over whether market forces will allow these reductions to reflect at the pump.
Speaking on the development, Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria (IPMAN), emphasized that the price drop was expected due to the direct link between crude oil costs and fuel production expenses. Meanwhile, Billy Gillis-Harry, President of the Petroleum Retailers Outlets Owners Association of Nigeria, has called for a petrol price stability framework to protect businesses from financial losses and encourage sustainable competition.
The drop in landing cost comes amid concerns over the 105% surge in petrol imports, which hit N15.4 trillion at the end of 2024. With ongoing price wars between Dangote Refinery, the Nigerian National Petroleum Company (NNPC), and independent importers, the coming weeks could determine whether Nigerian consumers will finally see relief at the pump.
