See details as new fuel price beckons as marketers gives new cost of petrol import

• The cost of importing petrol is now said to have increased to above N1,000 per litre marketers has revealed
• The increase has been attributed to the depreciation of the Nigerian currency at the official and unofficial markets
• This means the Nigerian government will have to work harder to keep fuel pump prices at the current rate of N620 per litre

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The cost of importing one litre of fuel by marketers from refineries abroad has increased to N1,117/litre as of Tuesday, July 16, 2024.

The new petrol landing cost was disclosed by the Major Energies Marketers Association of Nigeria (MEMAN) during a webinar with journalists on Wednesday, July 17.

Petrol landing cost now above N1,000 marketers say Photo credit: Bloomberg/contributor
Source: Getty Images

The major components that constitute petrol landing cost in Nigeria include product cost, traders and insurance margin, shipping, charges by government agencies, financing and banking charges and storage charges.

Petrol landing costs

According to a report by Punch, Clement Isong, MEMAN’s Executive Secretary, revealed that the landing cost of diesel was N1,157 per litre, while that of aviation fuel was N1,127 per litre.

Isong noted that the costs are verifiable as they were obtained from independent energy price benchmark providers.

He also mentioned that the association plans to release similar information regularly to keep the public informed.

Filling stations may adjusts price

Following the revelation and President Bola Tinubu's declaration on May 29, 2023, that fuel subsidies have been removed, the Nigerian National Petroleum Company Limited , which is the sole importer of petroleum products, will have to find a way to keep fuel prices from increasing.

At the moment, filling stations operated by the NNPC and major marketers sell PMS at between N617/litre and N660/litre, while independent marketers sell it for N700/litre or more.

However, there are signs that this won’t hold for long, as an earlier report from Legit.ng revealed that private depots are already hiking the ex-depot price of petrol from N630 to N720/litre.

Unless the NNPC continues to find a way to reduce depot prices (how much marketers buy), petrol prices could change at filling stations

Dangote confirms petrol sales in August

Earlier, Legit.ng reported that Dangote, in a chat with journalists, confirmed that petrol production had already begun.

The billionaire also revealed that petrol sales to marketers would commence from August 2024.

The refinery is expected to help reduce petrol prices from the current rate of over N700.

Source: Legit.ng