Fresh Fuel Prices Emerge Nationwide as Nigerians See Changes in Petrol Costs

Petrol and diesel prices on Tuesday, September 15, were below current landing costs in several major markets, despite a surge in global crude oil prices, according to Legit.

Brent crude was trading at $108.60 per barrel as of 7:50 a.m. West Africa Time, a 2.79% rise, while U.S. West Texas Intermediate crude climbed 4.42% to $105.90 per barrel.

The increase pushed Nigeria’s estimated landing cost for Premium Motor Spirit (PMS) to N1,420 per litre and Automotive Gas Oil (AGO) to N1,894 per litre.

Despite this, Dangote Petroleum Refinery is selling PMS at N1,350 per litre at the gantry, which is N70 below the current landing cost, while its AGO gantry price of N1,850 per litre sits N44 below the diesel landing cost.

Petrol below N1,350 in key markets

In Calabar, depot operators are selling PMS even lower than Dangote’s gantry price.

Mainland is offering petrol at N1,347 per litre, while Northwest and Soroman are pricing it at N1,345 and N1,346 per litre, respectively.

These figures are between N73 and N75 below the current landing cost.

Port Harcourt tells a similar story, with Masters and Liquid Bulk selling PMS at N1,350 per litre and TSL at N1,347.

In Warri, Nepal and Keonamex are also offering petrol at N1,350 per litre.

Diesel cheaper than replacement cost

The diesel market reflects a comparable trend.

Petroleumprice.ng reports that in Lagos, African Terminal, Integrated, Duport and Ibachem are all offering AGO at N1,830 per litre, which is N64 below the current landing cost and N20 below Dangote Refinery’s gantry price.

Those traders can sell today’s replacement cost below while still making a profit because their inventory was acquired more cheaply.

Industry sources described this as a growing distortion in the wholesale market, with bulk buyers holding earlier inventories capturing a larger share of trading activity.