Importers Predict New Petrol Landing Cost as NNPC, Others Reduce Prices Below Dangote Rate
- The Major Energies Marketers Association of Nigeria (MEMAN) has predicted an increase in the petrol landing cost
- MEMAN disclosed in the latest report that the petrol landing cost for June 2025 will be around N950 per litre, up from N870 in May
- The development comes as independent retail stations and NNPC retail outlets crashed petrol prices below Dangote Refinery’s rate
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Major Energies Marketers Association of Nigeria (MEMAN) has said that petrol landing cost in June 2025 is expected to be around N950 per litre.
The association’s report shows that the landing cost of PMS in November 2024 was about N971 per litre.
Source: UGC
MEMAN release new data on landing costs
MEMAN members are key players in the Nigerian downstream petroleum industry, providing reliable data on landing costs and other market information.
Petrol landing cost is the total cost of importing PMS from the international market into Nigeria and includes transportation, insurance, and other related expenses.
According to reports, in May 2025, the landing cost of petrol was around N870 per litre, which was higher than the N835 per litre ex-depot price announced by the Dangote Refinery.
Oil marketers lament losses
The refinery further lowered the ex-depot price to N825 per litre, triggering a nationwide petrol price crash.
Experts have disclosed that the 2023 fuel subsidy removal by the Nigerian government triggered price fluctuations.
Oil marketers have lamented that they are running at a loss due to the incessant price reductions by Dangote Refinery.
The marketers disclosed recently that they have banded together to minimise their losses.
NNPC, other retailers drop PMS price
A previous report by Legit.ng said that Nigeria’s petroleum market is experiencing a new price war as independent marketers and financially backed filling stations crash prices below the N875 per litre sold by the Dangote Refinery partner stations.
As of June 3, 2025, Al-Moruf Filling Station at the Power Line area in Igando in Lagos sells petrol at N865 per litre, Eunice filling station displayed N859, and MOJ sells for N865.
Meanwhile, NNPC Retail has also adjusted its rate to N870, adding to the growing list of stations challenging Dangote’s dominance in the petroleum retail market.
Data from Petroleumprice shows that depot owners have also dropped their prices.
According to the report, AITEO depot now sells petrol at N826 per litre, offering resellers a good margin advantage.
Source: Getty Images
Experts say these price movements come despite Dangote Refinery’s increased production capacity and recent refining gains.
They say these developments show a shift in price leadership, with private and independent operators overtaking the Dangote network.
Petrol landing cost impact on fuel price
Wale Ogundeji, an energy analyst, explained to Legit.ng that the petrol landing cost in Nigeria is primarily determined by several key factors,
He said these factors include international crude oil prices, foreign exchange (FX) rates, shipping and insurance costs, port charges, and import levies.
He said:
"Since Nigeria imports the bulk of its refined petroleum products, global oil market fluctuations directly influence how much importers pay per litre before it reaches local depots. For example, when global oil prices rise or the naira weakens against the US dollar, the landing cost increases significantly.
"Another critical factor is the logistical expense involved in transporting fuel from coastal depots to inland locations. This includes haulage fees, storage, and handling charges. If these costs rise due to poor infrastructure or insecurity, they contribute to a higher overall landing cost."
Ogundeji said the landing cost forms the base price for petrol pricing as marketers then add distribution margins, depot charges, and profit margins to arrive at the final pump price.
He said that any change in the landing cost, whether upward or downward, directly impacts how much Nigerians pay at the pump.
He added:
"In a deregulated market like Nigeria’s post-subsidy era, pump prices are meant to reflect real-time market realities. When landing costs increase, filling stations are likely to adjust prices upward, leading to higher transportation and commodity costs, which fuel inflation."
Dangote Refinery to import five million barrels
Legit.ng earlier reported that Dangote Refinery will continue its crude oil imports, with reports saying that it has already secured five million barrels of US WTI scheduled for July this year.
The mega 650,000 bpd capacity facility is set to import about 161,000 barrels per day of West Texas Intermediate (WTI), Reuters quotes sources as saying, extending its buying spree after June supplies.
According to the report, the final totals for July are subject to change if the refinery makes more purchases.
The article was updated by the head of the business desk, Victor Enengedi, with exclusive comment from an energy sector expert.
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Source: Legit.ng
