The landing cost of imported Premium Motor Spirit (PMS), commonly known as petrol, plummeted to N797 per litre on Monday, marking a significant decline amid escalating financial pressures on oil marketers.
This latest drop follows a fierce price war in Nigeria’s downstream oil sector, with industry players scrambling to minimize losses by slashing import volumes.
Last week, the Dangote Refinery triggered market upheaval by quietly reducing its petrol loading price from N825 to N815 per litre, a strategic N10 cut that forced private fuel depots to follow suit to retain competitiveness. The ripple effect deepened this week, with the landing cost—factoring in shipping, import duties, and exchange rates—falling by N20.16 per litre from N817.82 last Friday.
Mounting Losses, Rising Tensions
Energy analysts warn that the relentless price decline is bleeding oil marketers dry, with daily losses hitting N2.5 billion and monthly deficits soaring to N75 billion. In response, the Petroleum Products Retail Outlets Owners Association (PETROAN) is pushing for a regulatory mandate to fix fuel prices for six-month intervals, a proposal still under scrutiny by authorities.
Hammed Fashola, National Vice President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged the short-term consumer benefits of cheaper fuel but stressed the unsustainable toll on businesses. The unpredictability is forcing marketers to reduce purchases, worsening losses.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) confirms the new landing cost of N797.66 per litre, reflecting a precarious balance between market competition and survival. While consumers cheer lower pump prices, industry players warn of long-term risks, including reduced investment and potential supply disruptions if the crisis persists.
As Nigeria’s fuel market grapples with volatility, stakeholders brace for tougher negotiations with regulators to stabilize prices and safeguard the sector’s viability.
Peoplesmind