The landing cost of Premium Motor Spirit (petrol) in Nigeria has decreased to ₦922.65 per litre, a ₦32.35 drop from the previous price at Dangote's loading gantry, according to oil marketers. This decline in imported fuel prices may lead marketers to abandon the Dangote Refinery, Nigeria's largest refinery, in favour of cheaper imports.

The cost of petrol is comprised of several components, including shipping fees, import duties, and exchange rate fluctuations. Dealers have indicated that the lower cost of imported petrol is often an incentive to import the product, rather than relying on local refining.

This shift in preference comes despite the Nigerian Midstream and Downstream Petroleum Regulatory Authority's (NMDPRA) earlier advocacy for a 180-day suspension of fuel imports to promote local refining. The NMDPRA's efforts aimed to increase the use of local refineries, such as the 650,000-barrel-per-day Dangote Refinery, which was once lauded for its competitive pricing.

However, the Dangote Refinery is now struggling to match the affordability of imported alternatives. The company has attributed the recent increase in the price of Premium Motor Spirit (PMS) to the significant rise in global crude oil prices. As crude oil is the main raw material for PMS production, changes in its international price directly influence the cost of the final product.

Marketers contend that there is no binding agreement requiring them to prioritize locally produced fuel over cheaper imports. This highlights the persistent challenges in achieving self-sufficiency in fuel refining, as imported products continue to dominate the market.

The implications of this shift are far-reaching, with potential consequences for Nigeria's energy security and the country's ability to reduce its reliance on imported fuel. The Dangote Refinery, once hailed as a symbol of Nigeria's refining capabilities, now faces an uncertain future as marketers turn to cheaper imports.

As the Nigerian government continues to grapple with the challenges of promoting local refining, the recent decline in imported fuel prices serves as a stark reminder of the difficulties in achieving self-sufficiency in the energy sector. The fate of the Dangote Refinery, and Nigeria's refining industry as a whole, hangs in the balance as marketers weigh the costs and benefits of local production versus imported alternatives.

In the broader context, this development underscores the ongoing struggles of African countries to develop their refining capabilities and reduce their dependence on imported fuel. As the global energy landscape continues to evolve, the importance of achieving energy self-sufficiency will only continue to grow, making the outcome of this situation a crucial indicator of Nigeria's ability to adapt and thrive in an increasingly competitive energy market.