Fuel Import Ban: Marketers Predict Petrol Price, Battle Dangote Refinery For Control
- Petroleum product marketers have projected that Dangote Refinery could sell petrol for as high as N1,500 per litre if the government bans imports
- They disclosed that banning fuel imports would give the refinery the edge to hike petrol prices and encourage profit-making
- The development comes as the Nigerian government, under the Nigeria First Policy, plans to ban the import of products produced locally
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Oil marketers have disclosed that Dangote Refinery and others in Nigeria may raise petrol price to N1,500 per litre if there is an outright ban on fuel import.
The national publicity secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, disclosed that the rival union cannot predict any price, stressing that there will be a surge in price if the Nigerian government clamps down on fuel imports.
Source: UGC
Marketers reject fuel import ban
However, Dangote Refinery officials debunked the projection, stating that marketers are trying to justify their plans to continue to import inferior fuel.
According to reports, the marketers raised concerns as Nigeria mulled the One Nigeria Policy, banning the importation of products Nigeria could produce.
As the Lekki-based refinery and other modular facilities began producing petroleum products, speculations are rife that the Nigerian government might stop fuel import, which averages about 14.7 million litres daily.
The marketers also worry that the ongoing legal battle between the Dangote Refinery, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), and other stakeholders might favour the refinery.
Depot owners say Dangote Refinery lacks capacity
Due to these, stakeholders have cried out that the giant refinery cannot meet local demand.
Dangote has since refuted that claim, saying it has enough capacity to satisfy local fuel consumption needs.
The IPMAN spokesman disclosed that the report that President Bola Tinubu may ban fuel imports is not welcomed by the association, asking the President to reconsider the move.
He stated that imports are necessary to check the local refiners and prevent profiteering.
He cited the example of modular refineries selling diesel at higher prices than imported products.
Punch reports that Ukadike said that importers were the hopes of Nigerians when there were no refineries producing petroleum products.
He warned that refiners might extort consumers if there were no alternatives from any other sources.
PETROAN predicts petrol price surge
On his part, the national president of Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said that petrol prices could surge without imports, stating that Dangote Refinery’s prices are artificial.
He said that the country should not allow one source to control Nigeria's petrol supply.
Source: UGC
He stated that banning fuel imports is against the Petroleum Industry Act (PIA), which allowed an open market for all players.
Petrol prices surge across depots
Legit.ng earlier reported that the price of petroleum products rose significantly across depots on Monday, May 12, 2025, with petrol and diesel prices rising by as much as N47 in some locations.
The increase comes amid global oil price recoveries as Brent crude rose by 3.69% and WTI spiked by 4.03%, driven by US-China trade tensions easing and tariff cuts.
Findings showed that depot prices rose as petrol increased from N30 to N35 and diesel rose to N975 per litre.
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Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
