More Competition for Dangote Refinery As Oil Marketers Import Petrol

• Some oil marketers have decided to import petrol into the country despite the presence of the Dangote Petroleum Refinery
• This development suggests that there will be price competition, as the marketers will attempt to undercut Dangote’s current rate
• Price competition is good news for consumers, as filling stations will likely try to sell at lower prices

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

Nigeria’s downstream oil sector is witnessing renewed competition as major oil marketers resume increased importation of Premium Motor Spirit (Petrol)

The development sets the stage for a fresh round of price competition, potentially driving lower pump prices for consumers nationwide.

Oil marketers import petrol

Several marketers have opted to source petrol from international suppliers following a drop in crude oil prices.

Punch reports that oil marketers imported over 2.57 billion litres of petrol between March 1 and May 9, 2025, despite Dangote’s refinery increasing output and cutting prices to attract bulk buyers.

This includes over 1.47 billion litres in April alone, raising questions over why many marketers are still bypassing the local option.

Dangote had said on May 1, 2025, that he was still fighting for the survival of his $20 billion refinery.

Speaking at an investor forum, Legit.ng reported that Africa's richest man vowed to continue the fight.

He said:

“For a very, very long time” have “made a lot of money from” government-subsidised oil imports into Nigeria, were the ones trying to sabotage the 650,000 barrels per day oil refinery situated in Lekki, Lagos.

“We are fighting, and the fight is not yet finished. But I have been fighting all my life, and I am ready and 100% sure I will win at the end of the day."

He later clarified that those who were still fighting against the survival of his refinery were major marketers and traders, and not the Nigerian National Petroleum Company Limited leadership.

It is business for us, Marketers speak

But marketers and depot owners say their decision to import petrol is business-driven, not personal.

Olufemi Adewole, Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), countered that there is no cabal.

Speaking on during a recent TV interview, Adewole raised an alarm of what he called the “emerging monopoly” of the Dangote refinery, arguing that limited access to bulk loading and selective pricing strategies could distort the market.

"“There are vested interests, yes, but this is a free market. If marketers see better deals abroad, they will take them.”

Marketers give reasons Nigeria should not ban fuel imports

Earlier, Legit.ng reported that Oil marketers in Nigeria warned that any move by the federal government to ban the importation of petroleum products could trigger nationwide fuel shortages and price hikes.

The marketers noted that any ban could hurt the fuel market, citing insufficient local refining capacity.

The warning from the marketers comes following President Bola Tinubu’s introduction of a “Nigeria First Policy”.

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Source: Legit.ng