Oil marketers react to reduction in petrol landing cost

Oil marketers have reacted to the reduction in petrol price.

The landing cost of petrol in Nigeria which has reduced to N774.72 per litre.

On Tuesday, major oil marketers reacted to this change by adjusting their pricing strategies, challenging the N825 per litre loading cost set by Dangote Petroleum Refinery.

Industry players revealed that the recent decline in the cost of imported petrol could push pump prices down to around N800 per litre.

The decrease of N50.28 per litre in the landing cost has encouraged dealers to favor imported products over locally refined petrol due to better pricing.

As a result, private depots have also adjusted their prices, with some now selling petrol at rates lower than what Dangote Refinery offers.

Depot operators such as AA RANO, MENJ, MRS TINCAN, and others have set their prices between N830 and N832 per litre.

In contrast, marketers purchasing from Dangote at N825 per litre are reselling at N835 per litre, making minimal profits.

The competitive pricing environment has forced marketers to seek alternative sources to maintain their profit margins.

Many have shifted towards private depots, where pricing remains relatively stable compared to the fluctuating rates at Dangote Refinery.

This shift has led to concerns that Dangote may be compelled to lower its ex-gantry price to attract more customers.

Meanwhile, oil marketers have raised concerns over the frequent reduction in fuel prices, noting that many businesses are facing financial losses.

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has called for a regulatory framework that would ensure price stability by allowing adjustments only after a fixed period.