Price hike: Imported fuel cheaper than Dangote petrol despite naira-for-crude deal

The landing cost of imported fuel has once again become cheaper than Dangote Refinery’s petrol despite benefiting from the Naira for Crude deal by the Nigerian government.

Data released by the Major Energies Marketers Association of Nigeria on March 02 showed that imported petrol cost stood at N809.83 per liter amid the ongoing war in the Middle East.

Meanwhile, the gantry price at Dangote Refinery stood at N874 per liter after the 650,000-barrel-per-day plant hiked its price on Monday by N100, citing a crude oil price hike following the Middle East conflict.

This means that imported fuel is N64.2 per liter cheaper than Dangote’s petrol.

DAILY POST reports Dangote Refinery’s fuel price had triggered a retail price hike nationwide. Currently, filling stations in Abuja and its neighboring states, Nasarawa, Kogi, and Niger, sell petrol between N960 and N980 per liter, up from N855 and N899.

More importantly, Dangote-backed MRS filling is selling petrol at N975 per liter, which is N15 higher than Nigerian National Petroleum Company, AA Rano, Ranoil, and other retail outlets, which dispense at N960.

The development reflects the country’s downstream oil sector price war as Nigerians take the brunt of fuel price volatility.

MEMAN, speaking on the development, said, “The market is currently on high uncertainty.”

On the part of Dangote Refinery, the $20 billion plant in a statement on Thursday attributed its latest gantry hike of N100 per liter to rising crude prices.

The refinery claimed that it absorbed 20 percent of the crude oil cost escalation; by implication, the rest was pushed onto Nigerians.

“The refinery implemented a measured adjustment of N100 per liter in its ex-depot price of Premium Motor Spirit, representing an increase of about 12 percent. The refinery has absorbed 20 percent of the cost escalation, for now, to cushion the domestic market,” the company stated.

On the Naira for the crude sale deal with the Nigerian company, which began in 2024, Dangote confirmed implementation but insisted that the firm rely more on crude export.

According to Dangote Refinery, the NNPCL supplies its five crude cargoes in Naira, but it sources 13 cargoes through export monthly.

“Furthermore, while we receive about five cargoes a month from NNPC, which we pay for in Naira, these cargoes are priced at international market prices plus a premium and fall short of the 13 cargoes that we require to support sales into Nigeria,” Dangote Refinery said in a recent statement.

DAILY POST reports stakeholders had raised alarm over the persistence of the global crude market shock despite the implementation of the Naira-for-crude deal with Dangote Refinery. This alarm was amplified three days ago by a lawyer, Deji Adeyanju.

As of filing the report, Brent Crude stood at $85.12 per barrel, while West Texas Intermediate was $80.54.

DAILY POST reports that in February imported fuel was N77 cheaper than Dangote; at that time crude price was stable.