Petrol landing cost falls despite rise in crude oil prices

The landing cost of imported petrol in Nigeria has declined by ₦9.07 per litre to ₦1,283.81, despite a marginal increase in international crude oil prices, offering a slight easing in import costs amid persistently high prices at filling stations.

The latest figures, contained in the energy bulletin of the Major Energies Marketers Association of Nigeria (MEMAN), showed that the estimated landing cost fell from ₦1,292.88 per litre to ₦1,283.81 per litre. Blueprint reports

The reduction came as Brent crude oil, the international benchmark, rose slightly to $108.90 per barrel from $108.80 recorded previously.

Although the decline represents a modest reduction in the cost of bringing imported petrol into Nigeria, it has yet to translate into a corresponding reduction in retail prices, with motorists in Lagos and Abuja reportedly paying between ₦1,370 and ₦1,429 per litre.

The development highlights the gap between the estimated cost of importing petrol and the prices ultimately charged to consumers, as the downstream petroleum market continues to contend with elevated international oil prices, distribution expenses and commercial margins.

Imported petrol cheaper than Dangote refinery’s gantry price

MEMAN’s latest figures show that the landing cost of imported petrol is ₦66.19 per litre below the ₦1,350 per litre gantry price of Dangote Petroleum Refinery.

The difference represents approximately 4.9 per cent of the refinery’s stated gantry price.

Imported petrol is also cheaper than the ex-depot prices quoted by depot owners, which range from ₦1,348 to ₦1,358 per litre.

Based on those figures, the estimated landing cost is between ₦64.19 and ₦74.19 below the prevailing ex-depot prices.

The comparison has renewed attention on the relationship between import costs, locally refined products and the prices at which petroleum marketers purchase fuel for distribution.

However, the difference between the estimated landing cost and the refinery’s gantry or depot prices does not, by itself, establish that imported petrol should be sold at a particular pump price. The figures represent different stages of the petroleum supply chain and may reflect different commercial and operating costs.

The landing-cost estimate concerns imported petrol brought into the country, while gantry and ex-depot prices refer to the prices at which products are supplied from refining or depot facilities.

Why pump prices remain high despite lower landing costs

Despite the marginal decline in the cost of imported petrol, motorists in Lagos and Abuja were reportedly paying between ₦1,370 and ₦1,429 per litre at filling stations as of the latest report.

The difference between the landing cost and retail prices reflects additional expenses and commercial margins incurred along the supply chain.

These may include transportation from ports or depots to filling stations, storage, handling, distribution, financing and retail operating costs.

The actual price charged to motorists can also vary between locations and individual marketers, depending on their supply arrangements, operating expenses and pricing decisions.

Consequently, a decline in the estimated landing cost does not necessarily result in an immediate reduction in pump prices. The extent and timing of any adjustment depend on factors affecting the wider supply chain and how quickly lower costs are reflected in marketers’ prices.

The latest figures therefore offer only a limited indication of possible relief for consumers. While the decline may ease pressure on the import-cost component of petrol pricing, motorists remain exposed to prevailing retail prices until any reduction is passed through to the market.

For households and businesses that rely heavily on road transportation, the price of petrol remains an important component of daily expenditure. Commercial drivers, transport operators and small businesses are particularly exposed to changes in fuel costs because of their impact on operating expenses and the cost of moving goods and people.

Federal Government’s 30-day petrol relief initiative

The development comes amid Federal Government efforts to cushion the impact of rising fuel prices on households and businesses.

On October 8, 2026, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, announced a 30-day petrol discount initiative involving the Nigerian National Petroleum Company Limited (NNPC Limited).

The initiative was presented as a temporary relief measure intended to reduce the burden of high petrol prices, with priority given to public transport operators.

Oyedele explained that the arrangement was not a return to the former petrol subsidy regime but an effort to sell petrol at cost by reducing the retail profit margin.

The government also announced plans to pursue a mechanism for limiting sharp fluctuations in petrol costs. Under the proposal outlined by the minister, the government was negotiating a ₦1,350-per-litre ceiling on the ex-gantry or landing cost of petrol, subject to periodic review.

The proposed mechanism was intended to moderate the immediate effect of changes in international crude oil prices and foreign exchange rates on domestic petrol prices.

Oyedele said the approach was designed to reduce volatility rather than restore a general fuel subsidy or impose a uniform national pump price.

The distinction is important because a landing-cost ceiling is different from a guarantee that every filling station will sell petrol at ₦1,350 per litre.

NNPC’s existing N66-per-litre discount

Separately, NNPC Limited had introduced a ₦66-per-litre retail discount on October 1, 2026, to mark Nigeria’s 66th Independence Anniversary.

The company subsequently announced that the discount would continue until October 31 across its retail filling stations nationwide.

Following the Federal Government’s October 8 announcement, NNPC said it would forgo its retail profit margin as part of efforts to cushion the impact of elevated global crude oil prices on consumers.

The company maintained that the measure was a temporary customer-relief initiative and did not amount to the reintroduction of petrol subsidy.

The existing retail discount should be distinguished from the wider proposed price-modulation mechanism discussed by the Federal Government. They are related efforts to address fuel-price pressures, but they are not identical arrangements.

The distinction also matters when comparing pump prices across the country. The NNPC discount applies at its retail outlets and does not automatically establish a uniform price across independent marketers’ filling stations.

Global crude oil prices continue to influence domestic fuel costs

The marginal rise in Brent crude to $108.90 per barrel underscores the continued influence of international oil-market conditions on Nigeria’s downstream petroleum sector.

Although Nigeria produces crude oil, the price of petrol is affected by the cost of crude and refined products in international markets, foreign exchange movements, refining and distribution costs, and the commercial terms under which products are supplied.

Changes in global crude prices can therefore influence the cost of imported petrol and the pricing decisions of domestic refiners and marketers.

However, the relationship is not always immediate or directly proportional. Landing costs can move differently from crude benchmarks over short periods because of changes in refined-product prices, exchange rates, freight, insurance and other import-related expenses.

That helps explain why the estimated landing cost declined even as Brent crude recorded a small increase in the latest figures.

What the latest figures mean for motorists

The decline from ₦1,292.88 to ₦1,283.81 per litre represents a reduction of ₦9.07, or approximately 0.7 per cent.

While the movement is in the direction of lower import costs, it remains modest relative to the retail prices motorists are currently paying.

The estimated landing cost is still about ₦86.19 below the lowest reported retail price of ₦1,370 per litre and ₦145.19 below the highest reported price of ₦1,429 per litre. These differences are illustrative comparisons between the reported figures, not estimates of marketers’ profits, because landing cost and retail price account for different stages of the supply chain.

For consumers, the immediate concern remains whether lower import costs and the government’s relief measures will translate into more affordable petrol at filling stations.

For now, MEMAN’s latest bulletin indicates a marginal easing in imported petrol’s landing cost, even as international crude prices remain elevated and pump prices continue to put pressure on motorists, transport operators and businesses.

Whether the decline will lead to lower retail prices will depend on subsequent movements in import costs, supply-chain expenses and marketers’ pricing decisions.