The cost of bringing Premium Motor Spirit (PMS), commonly known as petrol, into Nigeria has climbed to N1,311.36 per litre as international crude oil prices rise above $100 per barrel.
Data from the Major Energy Marketers Association of Nigeria (MEMAN) showed that the estimated landing cost reached N1,311.36 per litre on September 8, up from the 30-day average of N1,216.34 per litre.
The latest figure is N95.02 higher than the monthly average, reflecting the impact of rising crude oil and refined petroleum product prices on Nigeria’s fuel import costs.
The increase has also widened the gap between import costs and the prices of locally supplied petrol. Dangote Petroleum Refinery currently sells PMS at N1,265 per litre at the gantry, about N46.36 below the latest estimated landing cost.
Prices at some Lagos depots were also lower than the latest import cost. A.A. Rano sold at N1,270 per litre on September 9, while Aiteo sold at N1,273. Ascon, Sahara and Integrated traded at about N1,279 per litre.
With the current depot prices below import parity, importing petrol at the latest estimated cost would be more expensive than buying from domestic suppliers.
The pressure on petrol costs has been linked largely to the rise in global crude prices. Brent crude moved above $100 per barrel on September 9, after the seven-day average used in MEMAN’s September 8 calculation stood at $95.36 per barrel.
MEMAN’s seven-day average import-parity estimate had already risen to N1,299.43 per litre, indicating that the cost of imported petrol was increasing even before the latest jump in crude prices.
Higher shipping costs are adding to the pressure. Rising tanker rates, partly linked to the Iran conflict, have increased the cost of transporting petroleum products into West Africa, further raising the overall cost of imported petrol.
The development could put pressure on domestic petrol prices if the global oil rally continues. Higher crude prices typically increase the cost of producing or importing refined petroleum products, which could eventually affect refinery and depot prices.
For now, Dangote Refinery remains below import parity with its N1,265 per litre gantry price, giving locally refined petrol an advantage over imported supplies.
Market participants will be watching crude prices and domestic refinery pricing closely in the coming days, as a sustained rise in global oil prices could increase pressure on petrol prices across Nigeria.
