Nigeria's Petrol Import Cost Surges Above Dangote Refinery

As of September 16, Nigeria's cost of importing petrol has reached N1,420 per litre, which is N70 higher than the current gantry price of N1,350 per litre set by Dangote Petroleum Refinery. This increase is placing significant pressure on fuel marketers who are attempting to replenish their inventories through international channels.

The widening gap between the import cost and the refinery's price is creating a two-tier market dynamic, where marketers who purchased stock at lower prices can sell competitively, while those restocking now face much higher acquisition costs. Compounding the situation, some marketers in Nigeria are selling petrol below the refinery's price, further squeezing margins for those dependent on imports.

The rise in costs is attributed to disruptions in Middle Eastern supply routes, particularly following attacks on Saudi Arabia's East-West Pipeline, which has affected freight and insurance costs for import-reliant markets like Nigeria.