According to the Association of Major Energy Marketers in Nigeria (MEMAN), the imported Advanced Vehicle Spirit (PMS) (PMS) (PMS) has increased significantly, with the current average cost per lift of 870.
Naija News Understanding this growth comes at a time when prices offered by Dangot Oil Refinery have created tensions in the market, affecting profit margins for fuel importers and marketers.
According to Memann, on April 28, the landing cost of gasoline was 872 per liter, as of April 29. A few days ago, on April 23, the cost per liter was ₦859, highlighting the rising cost of imported gasoline.
The surge has raised concerns about importers who are now struggling to sell their products at profitable prices due to pricing pressures.
In terms of retail, gasoline prices have changed significantly across the country. On Thursday, Dangote sold gasoline for 840, the same price offered by Matrix (Lagos) and Rainoil.
However, other marketers, such as Pinnacle, Mao, Sahara, AA Rano and Nipco, sell fuel at higher prices, ranging from ₦889 to 842, depending on location.
Lagos retailers benefit from lower prices, while South-South retailers pay more due to logistics costs. For example, First Wealth provides gasoline for 868 gasoline, while other retailers such as Sigmund and Liquid Bunk set it at 870. Meanwhile, the wife of Ogun State sold gasoline for $890 a liter, with Heyden following 885.
When talking about the situation, the President of the Nigerian Petroleum Products Retail Store Owners Association (PETROAN) Billy Gillis-Harrysaid that the business has been slow due to the continuous fluctuation of gasoline prices.
“Volatility has led to arbitrary price changes that have not been well managed.” He said.
Despite the obstacles, Gillis-Harry stressed that despite the difficulties, petrochemical members remained determined to provide Nigerians with access to energy.
The oil company president also acknowledged that the government is working to stabilize the situation and he still hopes that the challenges in the industry will eventually be resolved, and both consumers and businesses will benefit in the long run.
One of the main factors that contribute to the current situation is the pricing strategy of the Dangote oil refinery. Refineries have been cutting gasoline prices since the federal government traded with the facility’s Naira-For-For.
However, the lower price of Dangote negatively impacts fuel importers, forcing them to sell gasoline at a price below its cost to avoid causing too much damage.
After Naira-For-For-For-For transactions were suspended in March, importers raised their prices from 860 to 950. Dangote lowered gasoline prices to 900 liters per liter, according to instructions from the federal government to continue the deal.
However, pricing of refined petroleum products at Dangote’s refinery inadvertently incentivizes fuel imported into Nigeria, according to a report from S&P Global.
S&P Global noted that despite global crude oil prices, Dangerte did not significantly lower its gantry price, which led to increased imports from West Africa.
Reported that “Between April 1 and April 9, the Eurobob M1 swap fell from $734.25 per metric tonne to $603 per metric tonne, a drop of 17.9%, down 17.9%. However, during the same period, the truck price in Dankote only increased from 880/liter/ to 865/LILTIL (and later 835).
“This encourages a large number of products to West Africa, where the domestic prices are high, leading marketers to import more products from international traders
