Motorists Set For Fuel Price Shock As Landing Cost Surges

Marketers have warned that petrol prices may rise after the landing cost of imported fuel surged by ₦88 in just one week.

The cost of landing a litre of imported petrol in Nigeria has surged by ₦88 within a week according to data from the Major Energies Marketers Association of Nigeria (MOMAN).

he price increased from ₦797 per litre last week to ₦885 per litre this week. This rise reflects the ongoing fluctuations in fuel prices due to the deregulated market.

“The increase is a result of the inevitable price fluctuations in a deregulated market,” MOMAN stated. The new landing cost is now ₦25 higher than the ₦860 per litre that end-users pay for petrol supplied by Dangote and its partners. However, Dangote refinery’s ex-depot price remains lower at ₦815 per litre, which is ₦70 less than the new landing cost.

In recent weeks, petrol pump prices had dropped to an average of ₦860 per litre from around ₦1,000 in January. This decline was largely due to price cuts introduced by the Dangote refinery, which lowered the landing cost from approximately ₦927 to below its ex-depot price. As a result, marketers were forced to sell petrol at a loss, offering it below their cost price.

However, with the latest rise in landing costs and the ongoing disagreement between Dangote refinery and the Nigerian National Petroleum Company Limited (NNPC) regarding the naira-for-crude deal, petrol prices may increase in the coming weeks.

In a related development, the Dangote Group recently announced a temporary halt in selling petrol in naira. The group explained that this decision was necessary to align sales revenue with crude oil procurement obligations, which are denominated in US dollars.

Following this announcement, loading costs at private depots in Lagos rose from ₦850 per litre to about ₦900 per litre. Meanwhile, the Nigerian Port Authority (NPA) reported that between March 17 and March 23, 2025, seven vessels carrying 115,000 metric tonnes (154.22 million litres) of petrol were expected to arrive at different seaports across the country. These shipments were scheduled for delivery through the Tincan Port in Lagos, Lekki Deep Seaport in Lagos, and Calabar Port in Cross River State to enhance fuel supply.

Additionally, NPA records indicate that the Dangote Refinery imported 654,766 metric tonnes of crude oil within the same period.

The Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMA), Olufemi Adewole, expressed concerns over the naira-for-crude oil framework. He warned that this approach poses a risk to Nigeria’s foreign exchange stability.

“Crude oil transactions are traditionally carried out in US dollars due to its global stability and acceptance,” Adewole stated. He cautioned that using the volatile naira for crude oil transactions could discourage foreign investment and negatively impact Nigeria’s economy.
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