Nigeria’s major petroleum marketers have suspended petrol imports due to a significant increase in local supply from the Dangote Refinery, which has improved operations. Over the last 10 weeks, marketers sourced 148 million liters of petrol from the refinery, averaging two million liters daily.
Clement Isong, CEO of the Major Energies Marketers Association of Nigeria (MEMAN), shared this information during a webinar for energy reporters. He noted that major companies like 11 Plc., Ardova Plc., and Conoil account for 40 to 50 percent of Nigeria’s petroleum market. While MEMAN members have import licenses, they have turned to local supplies because of a competitive market environment.
During the past 10 weeks, petrol volumes sourced varied, with a low of 1,600,000 liters in Week 46 before slightly rebounding to 11,596,397 liters by Week 47. This shift stemmed from a federal government directive that allowed independent marketers to negotiate directly with local refineries.
Isong reported the spot price of petrol from October 10 to November 22, 2024, was N976.07 per liter, with an average price of N971.14 per liter. The estimated product cost per metric tonne was N708,390. Key factors influencing pricing include jetty location, exchange rates, and operational costs, with finance charges at 32 percent per annum over a 30-day cycle.
Local charges from the Nigerian Ports Authority and contributions to regulatory bodies also impact the final price.
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