The Major Energies Marketers Association of Nigeria (MOMAN) reported on Wednesday that the average litre of imported gasoline increased by 88 dollars in a week.
In its daily energy bulletin released on Wednesday, the association argued that price changes are unavoidable in a deregulated market and that the increase in the landing cost was confirmed by the association.
The weekly average increased from 797 per litre last week to 885 per litre this week. For every litre of imported gasoline in the nation, this is an increase of N88.
The new landing price is 25% higher than the 860 that MRS and other partners charge end-user customers for Dangote gasoline.
The Dangote refinery’s ex-depot gasoline price is 815 per liter, which is 70 percent less than the new landing price.
Due to price reductions at the Dangote refinery, the pump price of gasoline has dropped to an average of N860 per litre from January’s 1,001.
The refinery had to reduce its price cut as a result of the landing cost, which was roughly N927 below Dangote’s ex-depot price.
Because marketers were forced to sell gasoline at prices that were lower than their costs, they lost billions of naira as a result of the development.
The Dangote refinery and Nigerian National Petroleum Company Limited’s disagreement over the naira-for-crude deal and the rise in the landing costs are expected to cause the market to see a rise in petrol prices in the upcoming weeks.
The Dangote Group stated, “Dear valued customers, we wish to inform you that the Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in naira, while announcing the suspension of naira fuel sales last week. This decision must be made in order to prevent a conflict between our current US dollar sales and our crude oil purchase obligations.
Our sales of petroleum products in naira have far outsold the value of crude oil minted in naira. We must therefore temporarily adjust our sales currency to match our crude procurement currency. ”
The price of loading gasoline at private depots in Lagos increased to about 900 per liter right away after the announcement. Prior to the announcement, it was less than 850 / litre.
Importing of products has also increased.
Seven ships carrying imported Premium Motor Spirit were scheduled to dock at seaports along the country’s borders between , according to a document obtained from the Nigerian Port Authority. March 17 and 23.
These vessels, carrying 115,000 metric tonnes, representing 154. To increase fuel availability across the country, PMS was to bring in 22 million litres of products via three seaports.
The commodities landed at the Lagos Tincan port, the Lagos Lekki Deep Seaport, and the Cross River State Calabar port, according to an analysis of the NPA document.
Additionally, the report revealed that 654,766 metric tons of crude oil were also imported by the Dangote Refinery that year.
Additionally, read: PETROAN’s P’Harcourt Refinery Completes 180-Day Non-Stop Operation.
The naira-for-crude oil transaction framework poses significant risks, according to Olufemi Adewole, executive secretary of the Nigerian Depot and Petroleum Products Marketers Association. ”
Due to its stability and acceptability, Adewole raised concerns about the naira’s volatility and emphasized that crude oil transactions are typically conducted in US dollars.
The Nigerian Petroleum Products Retail Outlets Owners Association (PREO) pleaded with the Federal Government on Tuesday to stop selling petroleum products to Nigerian marketers in dollars.
Billy Gillis-Harry, president of the PETROAN National Association, said the announcement sparked affluence among marketers who now panic-buy gasoline out of concern for a price increase or scarcity.
He claims that allowing the sale of fuel in dollars will cause unnecessary stress to the economy and worsen inflation.
To protect the country’s economy and the welfare of Nigerians, he said, “We urge the government to make sure all transactions within the country are conducted in the local currency, the naira.”
Petron opposes the sale of any dollars-based petroleum products or other products in Nigeria. We think that such a strategy would negatively impact the economy, adding unnecessary pressure to foreign exchange, and aggravate Nigeria’s already troublesome inflationary situation. ”
According to MOMAN, those who are used to deregulating the downstream sector are restraining against deregulation.
At its Q1 2025 Press Training & Wednesday’s event in Lagos brought together industry experts to share insights into the changing energy industry.
The association stated in a communiqué signed by MEMAN’s CEO, Clement Isong, that the Petroleum Industry Act’s implementation is still on track.
According to the association, discussion should be sparked as part of a market-driven energy sector’s natural evolution.
According to the article, the transition from a state-controlled system to a free, deregulated market is crucial for improving efficiency, accountability, and long-term economic growth.
However, patience, adaptation, and trust are required for this transition. As the market settles, there will be difficulties, and those who are already subject to price control will likely face resistance. Nigeria can fully benefit from this transformation, according to the communiqué, with strict regulation, industry collaboration, and public transparency.
A functioning, deregulated market, according to MEMAN, will attract more investment, increase efficiency, and make the environment more competitive, bringing in more customers and customers.
MEMAN, one of the largest stakeholders in the sector, expresses its strong support for the roles of regulatory bodies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Competition and Consumer Protection Commission in ensuring a fair, fair, and well-regulated market.
Source: Channels TV
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