Imported Petrol Now Cheaper Than Dangote Refinery Price
The cost of importing Premium Motor Spirit, also known as petrol, has fallen below the new gantry price set by the Dangote Petroleum Refinery. This change comes after the refinery increased its petrol price earlier this week.
Data from the Major Energies Marketers Association of Nigeria show that the landing cost of imported petrol stood at ₦728.88 per litre last week. However, the Dangote refinery raised its gantry price from ₦699 to ₦799 per litre. This means the refinery’s price is now about ₦70 higher than the cost of bringing in petrol from abroad.
Following the price increase, MRS filling stations, which are linked to Dangote’s supply network, adjusted their pump price to ₦839 per litre. A visit to some stations confirmed that prices moved from ₦739 to ₦839 after the new rate was announced.
Dangote refinery explained that the adjustment was made after the festive period ended. The company said it had earlier reduced prices temporarily to help Nigerians cope with higher spending during the holiday season. According to the refinery, that support period has now ended, and prices have returned to more sustainable levels.
The company stated that this was the second festive season in which it absorbed extra costs to support the public. It said it remains committed to stable supply and market balance. The refinery added that it currently supplies around 50 million litres of petrol daily and that distribution across the country is running normally.
The Chief Executive Officer of the refinery, David Bird, said the plant is designed to process different types of crude oil. This flexibility allows it to maintain petrol production even during maintenance periods, ensuring a steady local supply.
Before this latest increase, imported petrol had been more expensive than Dangote’s ex-depot price, making it hard for importers to compete. In December, Aliko Dangote had reduced the gantry price by ₦129 to keep pump prices below ₦740 during the festive season. He said the move was also meant to reduce petrol importation.
Dangote had previously accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of issuing too many import licences when his refinery already had enough supply. He argued that continued importation under those conditions harmed local production.
Industry data showed that petrol imports fell from 52.1 million litres per day in November to 42.2 million litres per day in December. During the same period, Dangote refinery’s supply increased from 19.5 million litres per day to 32 million litres per day.
Sources close to the Dangote Group said the earlier price cut was only meant for the holiday period and that the current change is simply a return to normal market pricing. They stressed that the refinery is not trying to raise prices suddenly but to reflect economic realities.
However, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, claimed the earlier price reduction helped Dangote gain a stronger hold on the market. He warned that Nigerians may feel the impact if one supplier dominates the sector and called for a level playing ground for all marketers.
Dangote has repeatedly denied trying to create a monopoly. He maintains that he has not stopped anyone from building a refinery but insists that importing petrol when local supply is available is harmful to Nigeria’s economy.
It remains unclear whether importers will begin selling petrol at lower pump prices than Dangote-linked stations, now that imported fuel has a lower landing cost. The coming weeks may determine how this price competition affects Nigerian consumers.
