The price war in the downstream oil sector intensified on Tuesday as major oil marketers moved to offer a lower price against the gantry loading cost of N825 per litre set by Dangote Petroleum Refinery.
This development followed a revelation by marketers that the landing cost of Premium Motor Spirit (petrol) imported into Nigeria has dropped to N774.72 per litre.
Marketers said the continued price plunge may lead to a reduction in the pump prices of PMS to about N800 per litre.
Dealers said the N774.72 per litre landing cost, which factors in various expenses including shipping, import duties, and exchange rates, is a considerable reduction of N50.28 from the N825 per litre offered at the loading gantry of the Dangote Petroleum Refinery.
The situation, according to industry stakeholders, has ignited a price war, with retail marketers now opting to dump the refinery products for imported products on the basis of lower pricing.
Findings by The PUNCH also revealed that this decrease in landing cost is expected to influence the price at which petrol is sold to consumers and could increase marketers’ interest in returning to petrol imports.
