Petroleum marketers in Nigeria may soon stop importing petrol after the Dangote Petroleum Refinery cut its ex-depot price by ₦49 per litre last Friday.
This price reduction has changed the competition in the fuel market, with major and independent marketers admitting that Dangote’s new pricing makes importing petrol less profitable.
The refinery now sells petrol at ₦828 per litre, down from ₦877 — a 5.6% drop. This is the second major price adjustment in three months.
The Federal Government’s new 15% import tariff on refined fuel is also expected to make imported petrol even more expensive, giving Dangote’s locally refined product a stronger advantage.
According to the Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Clement Isong, the latest cut means imports may no longer make sense financially.
“It would stop imports now, definitely, since imports are higher than Dangote’s price,” he said.
Isong explained that Dangote, as a private refiner, can set prices freely, usually based on import parity — the estimated cost of bringing fuel into Nigeria. However, this cost changes depending on where the product is imported from and the size of the vessel.
He noted that large facilities like Apapa, which can handle 40,000 metric tonnes, get cheaper landing costs than smaller ones like Port Harcourt, which can only take 20,000 tonnes.
Isong added that Dangote reviews its prices using a 30-day average, not daily changes, to maintain stability. “If international prices keep rising, Dangote may increase his price later,” he said.
However, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that stopping petrol imports completely could cause fuel shortages.
He said local production, including Dangote’s output, currently covers only 30–35% of national demand.
“If imports stop, we might face scarcity because local supply is not enough,” he said.
He also mentioned that while PETROAN members are buying from Dangote, some are complaining about loading delays.
Gillis-Harry urged the government to reduce the 15% import duty on refined fuel to maintain stable supply and affordability.
He added that Dangote’s price cuts are part of normal market competition. “It’s nothing new. When the hunter learns to shoot well, the bird learns to fly better,” he joked.
According to data from the Major Energy Marketers Association of Nigeria (MEMAN), the average import cost of petrol in Nigeria is about ₦824.10 per litre — almost the same as Dangote’s current price.
At the ports, the landing price is around ₦830 per litre, while retail prices across Nigeria range between ₦850 and ₦950 per litre depending on location and marketer.
Overall, the new pricing has made Dangote’s locally refined petrol more competitive, and imports may soon decline — though experts warn that stopping them completely could still threaten supply stability.
