The landing cost of petrol has dropped to ₦774.82 per litre, making it cheaper than Dangote Refinery’s ex-depot price of ₦825 per litre, according to data from the Major Energy Marketers Association of Nigeria (MEMAN).
This ₦152.56 reduction (about 16.5%) comes as global crude oil prices continue to fall.
Crude Oil Price Drop Lowers Fuel Costs
The price of Brent Crude has fallen to $70 per barrel, while West Texas Intermediate (WTI) dropped to $66.70. In February, these prices were $76 and $69, respectively.
Because crude oil is the main ingredient in petrol production, this price drop has made fuel import costs cheaper, pushing the landing cost of petrol to ₦774.82 per litre.
This means that in the coming days, fuel pump prices could fall to around ₦800 per litre, down from the current ₦860 ₦880 per litre in Lagos and Abuja.
Impact on Fuel Prices and Market Competition
The drop in landing cost has intensified the price war between Dangote Refinery, NNPC, and fuel importers.
Reacting to this, Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), said:
“A further drop in crude oil prices could push petrol prices down to ₦800 per litre.”
Similarly, Billy Gillis-Harry, President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), has urged the government to introduce a price stability framework to protect marketers from sudden losses caused by fluctuating prices.
“We need healthy competition and multiple sources of fuel supply to keep domestic prices in check,” he said.
Nigeria Still Dependent on Fuel Imports
Despite Dangote Refinery now producing fuel, many marketers are still importing petrol due to pricing concerns and supply issues.
According to the National Bureau of Statistics (NBS), petrol imports surged by 105% to ₦15.4 trillion at the end of 2024.
With the latest fuel price drop, experts say Nigeria’s fuel market will remain highly competitive, with prices likely to fluctuate based on global crude oil trends and local refinery output.