Nigerian Fuel Prices May Drop as Imported Fuel Cheaper Than Dangote's, Marketers Suggest

The Independent Petroleum Marketers Association of Nigeria (IPMAN) hints at a possible nationwide drop in fuel prices due to the imported petrol being cheaper than prices from Dangote's refinery. The average cost of imported petrol is reported to be 77 naira per liter, significantly lower than Dangote's refinery price of 799 naira per liter.

IPMAN notes that 80% of its members currently source petrol directly from Dangote's refinery, leading to potential price reductions at fuel stations. Aliko Dangote, with a 650,000 barrel per day refinery, had previously aimed to lower petrol prices to 739 naira per liter, but this reduction has not been fully realized.

Despite global oil benchmark prices trading at around $64-69 per barrel, retail fuel prices in Nigeria remain high, prompting the possibility of price moderation.