Nigeria’s downstream petroleum market has entered a new and potentially disruptive phase as imported Premium Motor Spirit (PMS) has become cheaper than petrol supplied by the Dangote Petroleum Refinery, following a fresh upward adjustment in the refinery’s gantry price.
Industry data and market checks indicate that the landing cost of imported petrol has now fallen below Dangote’s ex-depot price, a development that could reshape pricing competition, import volumes, and retail pump prices in the coming weeks.
According to figures released by the Major Energies Marketers Association of Nigeria (MEMAN), the landing cost of imported petrol stood at ₦728.88 per litre as of last week.
In contrast, the Dangote Petroleum Refinery announced on Monday night that it had raised its PMS gantry price from ₦699 to ₦799 per litre, creating a price gap of about ₦70 per litre in favour of imported fuel.
Imported Petrol Beats Dangote on Price, Reversing Recent Market Trend
The development marks a significant reversal of the trend seen in late 2025, when locally refined petrol from the 650,000 barrels-per-day Lekki refinery consistently undercut imported products and squeezed importers out of the market.
With the new pricing regime, imported petrol beats Dangote on price, reopening the door for marketers who had previously scaled back importation due to uncompetitive costs.
Following the refinery’s announcement, MRS Oil Nigeria Plc—Dangote’s major retail partner—adjusted its pump price to ₦839 per litre, up from ₦739 sold during the festive period.
Visits to MRS filling stations on Tuesday confirmed the implementation of the new price across outlets in major cities.
Dangote Explains Price Realignment After Festive Intervention
In a statement issued late Monday, Dangote Petroleum Refinery described the price hike not as an increase, but a “modest realignment” after the end of a deliberate festive price support programme.
According to the company, petrol prices were temporarily reduced during the Yuletide to cushion Nigerians at a time of elevated household spending, adding that the intervention was never intended to be permanent.
The refinery explained that it had absorbed significant costs during the festive season to promote affordability and market calm, noting that this was the second consecutive year it had taken such measures in the national interest.
“Despite the price reduction, many filling stations failed to reflect the new price at the pump, thereby denying Nigerians the full benefits of the intervention,” the statement said.
With the festive period concluded, the refinery said PMS prices had been adjusted to a level it considers sustainable for long-term operations, market stability, and uninterrupted supply.
Domestic Supply Still Strong Despite Higher Price
The Chief Executive Officer of Dangote Petroleum Refinery, David Bird, said the facility continues to supply the domestic market with approximately 50 million litres of PMS daily, stressing that nationwide evacuation and distribution remain smooth.
Bird also highlighted the refinery’s design flexibility, which allows it to process a wide range of crude oil and intermediate feedstocks, enabling consistent production even during scheduled maintenance.
According to him, this operational resilience positions the refinery as a stabilising force in Nigeria’s downstream sector, particularly against external supply disruptions and foreign exchange volatility.
However, market analysts say price competitiveness remains a key determinant of market share, regardless of supply capacity.
Before the latest adjustment, imported petrol had struggled to compete with Dangote-supplied PMS, especially after the refinery slashed its gantry price by ₦129 per litre in December 2025 to keep pump prices below ₦740 during the Yuletide.
That move significantly reduced import volumes. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that petrol imports fell from 52.1 million litres per day in November to 42.2 million litres per day in December, while Dangote’s supply rose sharply.
With imported petrol now cheaper, marketers may once again test the waters, particularly if exchange rates and freight costs remain favourable.
Retailers, Marketers React to New Pricing Landscape
The National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, expressed concerns about the long-term implications of pricing strategies in the sector.
He argued that aggressive price reductions in December were aimed at market dominance and warned that Nigerians could face risks if a single supplier gained excessive control of PMS supply.
Gillis-Harry called for a level playing field, urging regulators to ensure that both local refiners and importers operate under transparent and competitive conditions.
Dangote, however, has consistently rejected monopoly accusations, maintaining that it has never prevented anyone from building refineries or importing petrol.
The billionaire industrialist has argued that importing fuel while local tanks are full amounts to economic sabotage.
For consumers, the immediate impact of the shift remains uncertain. While imported petrol is currently cheaper at landing cost, pump prices depend on additional factors such as distribution margins, retail overheads, and regulatory compliance.
Industry watchers say if importers move quickly and logistics costs remain stable, Nigerians could see price competition return to filling stations outside the Dangote retail network.
However, others caution that the volatility of global oil prices and foreign exchange could quickly erase any short-term advantage enjoyed by imported petrol.
The fact that imported petrol beats Dangote on price underscores the fluid nature of Nigeria’s deregulated downstream market, where pricing is increasingly shaped by global trends, operational costs, and strategic interventions.
As the market adjusts, regulators, marketers, and consumers will be watching closely to see whether competition leads to lower pump prices—or simply reshuffles market dominance without tangible relief at the pump.
