A litre of imported fuel now costs N88 more to land than it did a week ago, data released by the Major Energies Marketers Association of Nigeria (MOMAN) on Wednesday has shown.

In its daily energy report published on Wednesday, the organization acknowledged the increase in the landing cost, stating that price adjustments are unavoidable in a market that is deregulated.

This week's price increased from N797 per litre last week to N885 per liter. This means the price of each liter of petrol imported into the nation has increased by N88.

Customers that purchase Dangote gasoline via MRS and other partners pay N860, which is N25 less than the new landing cost.

Likewise, the ex-depot price of gasoline at the Dangote refinery is N815 per liter, which is N70 less than the current landing cost.

Fuel price declines

Due to price reductions by the Dangote refinery, the average price of petrol at the pump dropped to N860 a liter in recent weeks from roughly N1,000 in January.

The refinery was forced to lower its price after the landing cost dropped from almost N927 below Dangote's ex-depot price. Because they were forced to sell petrol below their costs, marketers lost billions of naira as a result of the occurrence.

Product importation has also increased

Seven ships carrying imported Premium Motor Spirit were scheduled to dock at seaports throughout the country's borders between March 17 and 23, per a document obtained from the Nigerian Port Authority.

In order to enhance the nation's fuel supplies, these ships were to import goods through three seaports, carrying 115,000 metric tons, or 154.22 million liters of PMS.

According to an examination of the NPA document, the items arrived at the ports of Calabar in Cross River State, Tincan in Lagos, and Lekki Deep Seaport in Lagos.

In the same time frame, the Dangote Refinery imported 654,766 metric tonnes of crude oil, according to the paper.

In a statement, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, Olufemi Adewole, said,

“The naira-for-crude oil transaction framework presents significant risks that could affect Nigeria’s foreign exchange stability and deter foreign direct investment.”

Adewole expressed worries about the naira's volatility while pointing out that because of its stability and international acceptability, crude oil transactions are typically conducted in US dollar, Channels reported.