Major oil marketers under the aegis of the Major Energies Association of Nigeria (MEMAN) have revealed that the landing cost of imported petrol has increased by N88 per litre in one week amid reports of an increase in the importation of the commodity.
According to reports, MEMAN confirmed in its daily energy bulletin on Wednesday, March 26, 2025, that the increase was from N797 per litre last week to N885 per litre this week, a situation it argues is expected in a deregulated environment.
The new landing cost is N25 higher than the N860 that end-user customers pay for Dangote petrol from MRS, other partners, and the Nigerian National Petroleum Company (NNPC) Limited retail outlets.
This is coming barely a week after Dangote refinery had announced that it would stop the domestic supply of petrol in naira due to the suspension of the naira for crude by the NNPC. It stated that the temporary decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.
PETROAN opposes sale of petrol in dollars by Dangote
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) had rejected the decision by the Dangote refinery to sell refined petroleum products in dollars.
- The National President of the association, Billy Gillis-Harry, had during a chat with journalists, urged the Federal Government not to allow the Dangote refinery to sell petrol in dollars to Nigerian marketers.
- Billy Gillis-Harry said the announcement created tension among marketers who now panic-buy petrol over fear of possible scarcity or price surge.
- According to him, allowing the sale of fuel in dollars will hurt the economy, bring undue pressure and worsen inflationary pressure.
He said, “PETROAN opposes the sale of petroleum products or any other products within Nigeria in dollars. We believe that such a practice would have an adverse impact on the economy, bringing undue pressure on foreign currency and exacerbating Nigeria’s already challenging inflationary situation.
“We urge the government to ensure that all transactions within the country are conducted in the local currency, the naira, to protect the economy and the welfare of Nigerians.’’
Resistance to changes caused by deregulation
MEMAN said that those accustomed to price control in the downstream sector are resisting the changes occasioned by deregulation.
- The association in a communique signed by its Chief Executive Officer, Clement Isong, at its Q1 2025 Press Training & Engagement held in Lagos on Wednesday, affirmed that the implementation of the Petroleum Industry Act remains firmly on track.
- The association said that debates should be encouraged as part of the natural evolution of a market-driven energy sector.
- It added that the transition from a state-controlled system to a competitive, deregulated market is essential for fostering efficiency, transparency, and long-term economic growth.
The communique partly reads, “However, this transition requires patience, adaptation, and trust. As the market stabilises, challenges will arise, and resistance from those accustomed to price control is inevitable. But with robust regulation, industry collaboration, and public transparency, Nigeria can fully realise the benefits of this transformation.’’
MEMAN added that a well-functioning, deregulated market will attract more investment, improve efficiency, and create a more competitive landscape that benefits both businesses and consumers.
It stated, “As key industry stakeholders, MEMAN strongly supports the role of regulatory agencies such as the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Federal Competition and Consumer Protection Commission in ensuring a fair, competitive, and well-regulated marketplace.
“It is imperative that their efforts remain focused on market stability, consumer protection, and building public confidence in the reform process.”
What you should know
The Dangote refinery had, in an official statement, announced that it was halting the supply of petroleum products in naira.
It stated, “Dear valued customers, we wish to inform you that Dangote Petroleum Refinery has temporarily halted the sale of petroleum products in Naira. This decision is necessary to avoid a mismatch between our sales proceeds and our crude oil purchase obligations, which are currently denominated in U.S. dollars.
“To date, our sales of petroleum products in Naira have exceeded the value of Naira-denominated crude we have received. As a result, we must temporarily adjust our sales currency to align with our crude procurement currency.’’
- It also debunked online reports that it was stopping loading due to an incident of ticketing fraud.
“This is a malicious falsehood. Our systems are robust, and we have had no fraud issues.
“We remain committed to serving the Nigerian market efficiently and sustainably. As soon as we receive an allocation of naira-denominated crude cargoes from NNPC, we will promptly resume petroleum product sales in naira,” the statement said.
