Imported petrol now costs more than Dangote fuel – Report

The cost of imported gasoline has surpassed the price offered by the Dangote Refinery, fueling calls for Nigeria to cease fuel imports and focus on domestic refining. A recent Energy Bulletin from the Major Energies Marketers Association of Nigeria (MEMAN) revealed that the spot landed cost of imported petrol stood at N1,223.32 per liter as of July 29.

This price is higher than the Dangote refinery's gantry price of N1,215 per liter. The bulletin also noted that Brent crude averaged $90 per barrel during the review period. This development supports the argument by the Independent Petroleum Marketers Association of Nigeria (IPMAN) that local refining capacity is now sufficient to meet the country's fuel demand.

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There was no justification for continued petrol imports when local refineries, particularly the Dangote refinery, were producing enough to supply the domestic market.

IPMAN's National Publicity Secretary, Chinedu Ukadike, stated that continued petrol imports are unjustified when local refineries can supply the domestic market. He argued that imports strain foreign exchange reserves and undermine investments in domestic refining. The latest pricing data, showing imported petrol costing more than locally refined products, appears to validate these concerns.

According to the MEMAN bulletin, Dangote's coastal price for PMS was N1,195 per liter, with its gantry price at N1,215 per liter, including regulatory charges. The report also indicated that the naira averaged N1,367.03 to the dollar during the review period, while elevated international crude oil prices contributed to higher import costs. The trend suggests that locally refined petrol now presents a more economical option for marketers compared to imports.

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Importing petrol when locally refined products were available only exerted additional pressure on foreign exchange and undermined investments in domestic refining.