Nigerian fuel importers are facing renewed pressure as rising international petrol prices and higher freight costs increase the cost of bringing products into the country, while the Dangote Petroleum Refinery’s pricing continues to limit import opportunities, according to a new market report.
The latest Daily Refined Products Commentary by S&P Global Commodity Insights said market participants expressed concern over higher flat prices, with traders pointing to the impact of the Dangote refinery’s pricing on Nigeria’s import market.
According to the report, a trader said premiums for Ghanaian-specification petrol were higher than for Nigerian-specification petrol because prices in Nigeria are constrained by the refinery’s pricing, saying prices are “capped by Dangote prices”.
The report added that gasoline prices in Lomé had climbed above the Dangote refinery’s sales prices, effectively eliminating arbitrage opportunities into Nigeria. It stated, “Lome values have risen above Dangote sales prices, which has ‘shut the arbitrage’, but this is not necessarily the case in Ghana.”
Although traders had anticipated an increase in the Dangote refinery’s coastal sales price, the report said the company kept its prices unchanged, though the newly introduced dollar pricing may affect prices.
