Nigeria’s petrol landing cost declined to ₦1,239.92 per litre at the spot level, according to the latest estimated import parity data for October 30, as Dangote Refinery’s consortium marketers reduced their gantry price to ₦1,220 per litre, intensifying competition across the downstream petroleum market.
The spot landing cost, based on the ASPM benchmark, was below the 30-day average of ₦1,289.36 per litre by ₦49.44, representing a decline of 3.84 per cent. The spot price based on the NPSC-NOJ benchmark was slightly lower at ₦1,238.91 per litre.
The decline in landing cost comes amid falling European gasoline benchmark prices, known as EBOB, which are used in Dangote Refinery’s restructured pricing arrangement. The benchmark-linked structure allows consortium marketers to adjust their selling prices in response to changes in market conditions.
Dangote consortium marketers reduced their petrol gantry price from ₦1,265 to ₦1,220 per litre, a cut of ₦45 or 3.56 per cent in a single day. The reduction has increased competition among marketers and prompted depot operators to review their prices.
Petroleumprice.ng gathered that several Lagos depots closed on Thursday at an average price of about ₦1,300 per litre. By Friday, October 30, prices had fallen following Dangote-linked adjustments, with some depots cutting as much as ₦40 per litre, equivalent to 3.08 per cent of the previous day's average.
Friday's reported Lagos depot prices showed African Terminal, Integrated, Rainoil, Ardova and Nipco quoting ₦1,260 per litre, while Aiteo offered the lowest price at ₦1,255 per litre. Across the six quoted price entries, the average stood at ₦1,259.17 per litre, down ₦40.83 or 3.14 per cent from Thursday's average.
The latest price movements reflect the influence of Dangote Refinery's pricing decisions on the wider wholesale market. With the refinery lowering its gantry price and consortium marketers competing for sales, independent depot operators have also adjusted their offers.
Beyond petrol, the estimated import parity data showed the spot landing cost of automotive gas oil (AGO) at ₦1,895.10 per litre, above its 30-day average of ₦1,845.78 by ₦49.32, or 2.67 per cent. Aviation turbine kerosene (ATK) recorded a spot landing cost of ₦1,860.13 per litre, slightly higher than its 30-day average of ₦1,858.57 by ₦1.56, or 0.08 per cent.
For marketers and bulk buyers, the decline in petrol landing cost and wholesale prices offers a lower-cost purchasing environment. However, the extent to which these reductions will translate into sustained savings at retail outlets will depend on subsequent depot prices, distribution costs and the pace of pump price adjustments.