Nigeria’s fuel importers are bracing for significant financial setbacks as the Dangote Petroleum Refinery slashes petrol prices, further shifting the balance of power in the country’s energy sector.
In a move that could redefine Nigeria’s fuel supply chain, the Dangote Petroleum Refinery has reduced the ex-gantry price of Premium Motor Spirit (PMS), commonly known as petrol, for the third time in six weeks. The latest adjustment—a N30 drop to N835 per litre—has widened the gap between locally refined fuel and imported petrol, leaving importers exposed to steep losses.
A Costly Disadvantage for Importers
Industry data reveals that the average landing cost of imported petrol now stands at N868.33 per litre—N33.33 higher than Dangote’s ex-depot price. This disparity could see importers losing an estimated N466.62 million daily, translating to a staggering N13.998 billion monthly.
While these figures are substantial, they mark an improvement from March, when importers faced even steeper losses—up to N2.5 billion daily—due to volatile pricing. The reduced losses now stem from a sharp decline in petrol imports, which have plummeted from 44.6 million litres per day in August 2024 to just 14.7 million litres as of April 2025, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Dangote’s Expanding Influence
The refinery’s aggressive pricing strategy has granted it considerable leverage in the market, with partner distributors—including MRS, Ardova, Heyden, and Tecno Oil—adjusting pump prices nationwide. Consumers in Lagos now pay **N890 per litre, down from N920, while prices in the North-West and North-Central regions have dropped to N910 per litre. The South-East, South-South, and North-East now see petrol at N920 per litre, down from N950.
This shift has left fuel marketers in a precarious position. Many are now forced to sell existing stock—purchased at higher rates—at a loss to remain competitive. Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), acknowledged the consumer benefits but lamented the financial strain on marketers.
“While the price reduction is good for Nigerians, many of our members are stuck with old stock bought at higher prices,” Ukadike said. “We hope the recent naira appreciation against the dollar will reflect in further price adjustments.”
Importers at a Crossroads
Import-dependent marketers, particularly members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), are the hardest hit. With Dangote’s refinery ramping up production and the Port Harcourt Refinery resuming operations, analysts suggest Nigeria’s reliance on imported fuel may continue to shrink.
Farouk Ahmed, NMDPRA’s Chief Executive, attributed the import decline to increased local refining and foreign exchange challenges. Meanwhile, Eche Idoko, Publicity Secretary of the Crude Oil Refinery Owners Association of Nigeria (CORAN), warned that importers must adapt or risk obsolescence.
“Local refining is no longer the future—it’s the present,” Idoko stated. “Importers who fail to adjust their business models will struggle to survive.”
Calls for Regulatory Scrutiny
Not everyone welcomes Dangote’s pricing dominance. Dr. Billy Gillis-Harry, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), criticized the frequent price adjustments, questioning whether they reflect true production costs or strategic market control.
“These arbitrary changes create instability,” he argued. “Regulators like the FCCPC and NMDPRA must ensure fair competition and prevent monopolistic practices.”
Meanwhile, the Nigerian National Petroleum Company Limited (NNPCL) has also adjusted its prices, selling petrol at N935 per litre in Abuja—still N20 higher than some Dangote-linked stations. This disparity underscores the growing price war triggered by local refining.
The Road Ahead
As Dangote’s refinery strengthens its foothold, Nigeria’s fuel sector appears poised for a major transformation. While consumers may enjoy lower prices in the short term, the long-term implications for importers and market competition remain uncertain.
For now, one thing is clear: the era of fuel importation dominance is fading, and local refining is taking center stage. Whether importers can pivot in time—or face extinction—will shape Nigeria’s energy landscape for years to come.