|By Adejumo Adekunle-
MEMAN Data Reveals 16.5% Cost Reduction as Global Oil Prices Plummet
Petrol Prices May Drop to N800/Litre Amid Intensifying Market Competition
Industry Players Push for Pricing Stability to Curb Retailer Losses
The cost of landing premium motor spirit (PMS) in Nigeria has plummeted to N774.82 per litre, making it cheaper than Dangote Refinery’s ex-depot price of N825 per litre.
This development, captured in the latest Competency Centre Daily Energy Data from the Major Energies Marketers Association of Nigeria (MEMAN) on Tuesday, follows a steady decline in global crude oil prices.
MEMAN’s figures reveal that the estimated import parity into tanks now stands at N774.82 per litre, marking a N152.56 or 16.5% decrease from the N927.48 per litre recorded on February 21, 2025. This drop aligns with the sustained fall in Brent crude, which slumped to $70, and WTI crude, which hit $66.70 as of Wednesday, March 12, 2025, down from $76 and $69 in February.
With the reduced cost of imported petrol, industry experts predict that pump prices could dip to N800 per litre, down from the current N860–N880 per litre range in Lagos and Abuja. Earlier in March, both the Nigerian National Petroleum Company Limited (NNPC) and Dangote Refinery slashed their retail prices to this range in response to market forces.
Price War Intensifies
The latest drop in landing cost is expected to escalate competition between Dangote Refinery, NNPC, and fuel importers, further fueling the price battle. Reacting to the trend, Chinedu Ukadike, spokesperson of the Independent Petroleum Marketers Association of Nigeria (IPMAN), projected that prices could settle at N800 per litre in the coming weeks.
“Crude oil remains a critical cost driver in fuel production, and with this price reduction, we anticipate a corresponding drop in petrol prices,” Ukadike explained.
Meanwhile, Billy Gillis-Harry, President of the Petroleum Retailers Outlets Owners Association of Nigeria (PETROAN), has called for a petrol price stabilization framework to shield retailers and marketers from losses. He emphasized the need for a diversified supply chain to foster healthy market competition and ensure affordability.
“This strategy will prevent domestic fuel prices from exceeding import parity, securing sustainability in the sector,” Gillis-Harry stated.
Surge in Fuel Imports Despite Local Production
Despite local refining efforts, Nigeria’s petrol imports soared by 105% to N15.4 trillion in 2024, according to the National Bureau of Statistics (NBS). Industry stakeholders cite limited domestic refining capacity, price competition fears, and market uncertainties as key reasons why importation persists, even as Dangote Refinery ramps up production.
