The Major Energies Marketers Association of Nigeria (MOMAN) revealed on Wednesday that the landing cost of imported Premium Motor Spirit (PMS), commonly known as petrol, has jumped from ₦797 per litre to ₦885 per litre within just one week with a staggering ₦88 increase.
This latest spike in cost has raised fresh concerns across the oil and gas sector, with experts warning of potential petrol pump price hikes in the coming weeks. The surge further highlights the volatility of Nigeria’s downstream petroleum market in the wake of full deregulation.
According to MOMAN’s daily energy bulletin, price fluctuations like this are expected in a deregulated environment. “Those accustomed to price control are struggling with the reality of a competitive, market-driven sector,” MOMAN stated during its Q1 2025 Press Training & Engagement in Lagos.
Interestingly, the current landing cost surpasses the ₦860 per litre that customers pay for Dangote petrol from marketers like MRS. The Dangote refinery’s ex-depot price stands at ₦815 per litre a full ₦70 lower than the newly reported landing cost for imported fuel.
Dangote Refinery Halts Naira Sales, Escalating Concerns
The dramatic shift comes after Dangote Petroleum Refinery announced it had temporarily suspended the sale of petroleum products in naira. In a statement, the company explained the move was necessary to balance its US dollar crude purchase obligations with sales receipts.
“Our sales of petroleum products in naira have exceeded the value of naira-denominated crude we have received,” the Dangote Group stated. “To avoid a mismatch, we are temporarily adjusting our sales currency.”
This announcement immediately triggered panic among marketers, driving the loading cost of petrol at private depots in Lagos from under ₦850 to about ₦900 per litre.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) reacted swiftly, urging the Federal Government to prohibit the sale of fuel in foreign currency within Nigeria. PETROAN National President Billy Gillis-Harry warned that dollar transactions would worsen inflation and increase pressure on the already weak naira.
“We believe selling petroleum products in dollars would adversely affect the economy. All domestic transactions should be in naira,” Gillis-Harry emphasized.
Despite the Dangote refinery’s operational scale-up, data from the Nigerian Ports Authority (NPA) revealed a notable rise in fuel imports. Between March 17 and 23, seven vessels carrying 154.22 million litres of petrol were expected to berth across ports in Lagos and Calabar.
Simultaneously, Dangote Refinery reportedly imported 654,766 metric tonnes of crude oil during the same period a signal that domestic production is still being supplemented by significant imports.
However, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has expressed concerns about the naira-for-crude arrangement. According to Executive Secretary Olufemi Adewole, the policy presents risks to Nigeria’s foreign exchange stability and could deter future foreign direct investment.
MEMAN Urges Patience Amid Deregulation Transition
MOMAN, under the umbrella of the Major Energy Marketers Association of Nigeria, reiterated its support for the deregulated model, stating that it will eventually lead to greater efficiency, investment, and competitive pricing. The association believes that despite initial resistance, the market will adjust.
“This transition requires patience, adaptation, and trust,” stated MEMAN CEO Clement Isong. “With robust regulation, industry collaboration, and public transparency, Nigeria can realise the full benefits of deregulation.”
MEMAN reaffirmed the importance of regulatory bodies like the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and the Federal Competition and Consumer Protection Commission (FCCPC) in stabilizing the market, protecting consumers, and enhancing public confidence.
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