Fuel importers jack up depot price to N1,350, signalling pump hike

Petrol prices at the pump are primed to climb after importers raised their depot rate to N1,350 per litre, up from N1,230, effective July 17.

Industry sources say the new rate has already been communicated to marketers, meaning any filling station that buys from importers will soon pay more at source, and that extra cost will almost certainly land on consumers.

The increase lands just days after NMDPRA issued new import licences for the third quarter, a move meant to boost supply and foster competition. Companies like AA Rano, AYM Shafa, Bono, NIPCO, and Pinnacle got petrol approvals, while diesel licences went to AA Rano, AYM Shafa, Bono, Matrix, and Pinnacle.

But the pricing outlook has soured quickly. Geopolitical friction between the U.S. and Iran has disrupted shipping through the Strait of Hormuz, inflating freight costs for fuel cargoes headed to Nigeria. Importers say they are simply passing on those higher logistics bills.

A downstream sector source questioned the logic, arguing that more importers were supposed to mean lower prices, not higher ones.

"The expectation was that additional licences would drive competition and give Nigerians more choices. Instead, we are seeing price increases that will end up hurting the same consumers," the source said.

One marketer acknowledged that retailers with imported stock have little room to absorb the hike.

"You buy at a higher depot price, you sell at a higher pump price. There is no way around it," the marketer said.

The marketer also noted that Dangote refinery products remain cheaper than imports, giving marketers who source locally a competitive buffer.

That advantage, however, may be narrowing. Dangote recently shifted from naira to dollar sales, cancelling all existing naira invoices and setting new prices at $0.779 per litre for petrol, $1.087 for diesel, and $0.942 for aviation fuel. The refinery blamed persistent shortfalls in local crude supply under the naira-for-crude deal with NNPCL, forcing it to buy more crude on the international market in dollars.

The dollar switch protects Dangote from currency losses but puts marketers in a tighter spot—they now need to secure foreign exchange before purchasing. Observers say this has already pushed up replacement costs and is filtering into depot and pump prices across the board.