Petrol marketers in Lagos have increased pump prices to between N925 and N935 per litre, citing rising landing costs, Dangote Refinery’s shift to non-naira sales, and delays in finalizing a naira-for-crude policy, okaynews.com reports.
The increase follows a N46 per liter rise in landing costs, which reached N843.28 per liter last Monday. Filling stations like TotalEnergies and MRS have adjusted their prices accordingly.
The Major Energy Marketers Association of Nigeria (MEMAN) attributes the increased landing costs to higher international petroleum prices due to Europe’s transition to summer gasoline specifications and supply constraints. They noted that arbitrage flows into Europe are unprofitable, and stocks in the Amsterdam-Rotterdam-Antwerp (ARA) hub have decreased.
MEMAN also pointed to seasonal refinery maintenance in Europe and a fire at Italy’s Falconara refinery as factors contributing to supply tightness and price volatility. While the foreign exchange rate has remained relatively stable, the association emphasized that landing costs, influenced by these factors, can fluctuate throughout the day.
MEMAN suggested that cost savings could be achieved through negotiations, improved foreign exchange access, and logistics efficiencies, such as reducing ship-to-ship (STS) transfers or handling larger cargo shipments. The landing cost calculation includes factors like the exchange rate, finance charges, STS and related charges, NIMASA and NMDPRA fees, NPA and VAT charges, and other operational costs.
