The landing cost of imported petrol has surged by ₦88 per litre within a week, according to data obtained from the Major Energies Marketers Association of Nigeria (MEMAN) on Wednesday, raising fears of increase in the pump price of the product.

The association confirmed the increase in its daily energy bulletin, stating that price fluctuations are inevitable in a deregulated market.

The landing cost rose from ₦797 per litre last week to ₦885 per litre this week, a ₦25 difference from the ₦860 per litre paid by end-users for Dangote petrol supplied through MRS and other partners. Similarly, Dangote Refinery’s ex-depot price currently stands at ₦815 per litre—₦70 lower than the new landing cost.

In recent weeks, the retail price of petrol fell to an average of ₦860 per litre, down from approximately ₦1,000 per litre in January, following price reductions by the Dangote Refinery. The landing cost previously stood at ₦927 per litre, above Dangote’s ex-depot price, prompting the refinery to implement a price cut.

This development led to significant financial losses for marketers, who were forced to sell petrol below cost price. However, industry experts predict an imminent price hike due to rising landing costs and an ongoing dispute between Dangote Refinery and the Nigerian National Petroleum Company Limited (NNPC) over the naira-for-crude oil transaction framework.

Last week, the Dangote Group announced the suspension of petroleum product sales in naira. In a statement, the company explained:

*”Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in US dollars.

“To date, our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.”*

Following the announcement, loading costs at private depots in Lagos jumped to approximately ₦900 per litre, up from below ₦850 per litre.

Meanwhile, petrol importation has increased. Documents from the Nigerian Ports Authority (NPA) revealed that seven vessels carrying 154.22 million litres of Premium Motor Spirit (PMS) were scheduled to arrive at Nigerian seaports between 17 and 23 March. These vessels docked at Tin Can Port and Lekki Deep Seaport in Lagos, as well as the Calabar Port in Cross River State.

In the same period, the Dangote Refinery imported 654,766 metric tonnes of crude oil.