By Amos Udom
Business Development Anchor
In a significant development for Nigeria’s fuel supply sector, a reduction in the landing cost of Premium Motor Spirit (PMS), commonly known as petrol, has prompted marketers to import a substantial 156.9 million litres of fuel. This move, occurring between April 8 and 16, 2025, is a response to the declining cost of imported petrol, which dropped to N853 per litre as of Tuesday.
The decrease in landing costs is largely attributed to a dip in global oil prices, with Brent crude trading at $64.76 per barrel, compared to the previous week’s price of $62.82. This price reduction, coupled with a favorable exchange rate of N1,603.78 per dollar, has led marketers to secure approval for the importation of 117,000 metric tonnes of petrol—equivalent to the 156.9 million litres, aimed at boosting fuel availability across the country.
The importation effort, revealed through documents obtained from the Nigerian Ports Authority (NPA) and the Major Energies Marketers Association of Nigeria (MEMAN), underscores the strategic response by fuel marketers to address the growing demand for petrol and stabilize the local market. The landing cost, which now stands at N853 per litre, factors in the total cost of importing the product, including shipping, import duties, and exchange rates. This is a significant reduction from the previous week’s cost of N856.75 per litre, providing some relief to consumers who have faced fluctuating fuel prices.
Marketers have responded swiftly to the changing market dynamics, with shipments arriving at key ports across Nigeria. The first batch of petrol, totaling 21,000 metric tonnes, arrived at the Tincan port in Lagos on April 8, followed by additional shipments arriving in subsequent days, including a 20,000-metric tonne shipment on April 10 and another 15,000 metric tonnes in Calabar on April 12. By mid-April, the total shipment of 117,000 metric tonnes will have been delivered, helping to meet the growing demand for fuel across the country.
This increase in imports is especially timely, as Nigerians have recently seen fluctuations in fuel prices due to factors such as the suspension of product sales by the Dangote Refinery and currency devaluation. However, with these new imports and reduced landing costs, many are hopeful that fuel prices will stabilize in the coming weeks.
The reduction in petrol landing costs also aligns with broader efforts within the downstream oil sector to enhance supply chain efficiency and optimize the cost of fuel distribution. While challenges remain, the importation of 156.9 million litres of petrol represents a crucial step in addressing the ongoing supply and pricing concerns facing Nigeria’s fuel market.
As global oil prices remain volatile, marketers are expected to continue monitoring market conditions closely, with the aim of keeping fuel costs competitive while ensuring consistent supply. This move also highlights the significant role that both global oil trends and local market dynamics play in shaping fuel prices and availability in Nigeria.
