The cost of locally refined petrol in Nigeria is higher than imported petrol due to dollar-denominated charges on both refined products and crude oil imports.
Data from the Major Energies Marketers Association of Nigeria shows that while the price of imported petrol was N958.89 per litre, locally refined petrol from the Dangote Refinery costs N970/litre, and from Port Harcourt Refining Company, N1,030/litre.
Industry operators, including the Crude Oil Refinery Owners Association of Nigeria, blame high costs on dollar-based charges such as jetty, pipeline, and NIMASA fees.
The National Vice President of the Independent Petroleum Marketers Association of Nigeria, Hammed Fashola, and other industry figures have called for the conversion of these charges to naira to help reduce petrol prices.
Despite government directives for crude sales and refinery transactions in naira, agencies like NIMASA and NPA still impose dollar-based charges, which continue to drive up costs.
Efforts are underway to transition these charges to naira.
In addition to charges, the importation of crude oil also impacts pricing, with fluctuations in crude costs and exchange rates influencing local petrol prices.
Marketers argue for flexibility in choosing sources of refined products to maximize profits. The issue highlights the complex nature of petrol pricing in Nigeria’s oil sector.
