Petrol Price War Intensifies as Fuel Landing Cost Drops to N774/litre

• Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, predicts that petrol prices may indeed fall to N800 per litre.
• The landing cost of petrol has fallen to N774.82 per litre—a 16.5% decrease from the N927.48 per litre quoted in February.
• The global crude oil price drop has played a key role in this shift, with Brent Crude lowering to $70 and US WTI to $66.70.

The competition in Nigeria’s petrol market has reached new heights as importers slash prices, undercutting Dangote Refinery and potentially driving petrol prices as low as N800 per litre.

Eko Hot Blog reports that this development follows a significant drop in the landing cost of Premium Motor Spirit (PMS), which has fallen to N774.82 per litre—a 16.5% decrease from the N927.48 per litre quoted in February.

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The global crude oil price drop has played a key role in this shift, with Brent Crude lowering to $70 and US WTI to $66.70.

As a result, fuel import costs have decreased, prompting the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery to reduce their petrol retail prices to N860 and N880 per litre in Lagos and Abuja earlier this month.

With the latest drop in fuel import landing cost, the price war between Dangote Refinery, NNPC, and fuel importers is expected to escalate further.

Chinedu Ukadike, spokesperson for the Independent Petroleum Marketers Association of Nigeria, predicts that petrol prices may indeed fall to N800 per litre.

“Crude oil is a major component in the production of fuel, so a further reduction in its price would definitely warrant a drop in petrol price, and it is possible to drop to N800 per litre.”

Earlier, in a meeting with the Nigerian Petroleum Minister of State, Heineken Lokpobiri, President Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Dr Gilly Billy-Harris emphasized the need for a stable petrol price framework and healthy competition in the petroleum downstream sector.

He urged regulatory authorities to promote competition and control price fluctuations to prevent monopolies and protect the interests of both retailers and marketers.

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“This will drive healthy competition and guarantee that our domestic prices will not exceed import parity, thereby ensuring the best possible affordability with sustainability,” he said.

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