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Nigerian fuel importers are under growing pressure as rising international petrol prices increase landing costsDangote Refinery’s pricing has effectively set a price ceiling in Nigeria, leaving importers unable to pass on higher costs to marketersS&P Global Commodity Insights said arbitrage opportunities from Lomé have closed
Nigerian fuel importers are confronting an increasingly difficult commercial environment as surging international petrol prices and steeper freight charges tighten the economics of bringing Premium Motor Spirit (PMS) into the country, while Dangote Petroleum Refinery’s pricing strategy limits their ability to recover those costs.
A Daily Refined Products Commentary published by S&P Global Commodity Insights says market participants have grown more concerned about the widening gap between what it costs to import petrol and what can realistically be charged in the Nigerian market.
Dangote Refinery’s pricing continues to reshape Nigeria’s fuel market Photo: HeliRySource: Getty Images
Dangote Prices Cap Import Returns
The core of the problem, according to S&P Global,
