Fuel Market Shake-Up: Imported Petrol Undercuts Dangote's Price as Tinubu’s Policy Takes Effect
- The landing cost of imported petrol has crashed below locally refined products, new data shows
- The Major Energies Marketers Association of Nigeria (MEMAN) says that petrol landing dropped to N829.77 per litre as of October 30, 2025
- The drop is about N7.77 cheaper than locally refined products, especially from the Dangote Refinery
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The landing cost of imported Premium Motor Spirit (PMS) has dropped below the price of locally refined petrol from the Dangote Refinery, even after the Federal Government’s new 15% import tariff.
According to the Major Energies Marketers Association of Nigeria (MEMAN), imported petrol landed at ₦829.77 per litre as of October 30, compared to the Dangote refinery’s ₦877 per litre ex-depot price.
Source: UGC
Tinubu’s 15% tariff: “A bridge, not a burden”
This represents a further decline from ₦849.61 recorded on October 13, showing a consistent downward trend in import costs.
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Meanwhile, depot operators have adjusted their prices, averaging ₦887 per litre, with companies like Pinnacle, NIPCO, and Matrix selling at about ₦872–₦875.
The lower import landing cost has raised debate over the competitiveness of local refining, even as the government moves to protect the domestic market.
On October 31, the presidency confirmed that President Bola Tinubu had approved a 15% import duty on petrol and diesel.
The move, according to his media aide Sunday Dare, aims to “reshape Nigeria’s energy landscape” and “end decades of fuel import dependence.”
Dare described the tariff as a strategic bridge designed to make imported products less competitive, giving local refiners like Dangote Refinery, Port Harcourt Refinery, and modular plants across the country a stronger market footing.
“For years, Nigeria exported jobs and drained foreign reserves by importing fuel,” Dare wrote on X.
“This policy reverses that trend and ensures that our oil wealth directly benefits Nigerians.”
The tariff will take effect after a 30-day transition period, ending November 21, 2025, as part of broader reforms to encourage local production and reduce foreign exchange pressure.
Industry Concerns: Fear of monopoly, shortages
While the policy aims to promote self-sufficiency, some industry players have raised alarm over potential fuel shortages and monopolistic control.
The president of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that the measure could cripple fuel importation if poorly implemented.
“Importers provide a price-check mechanism against profiteering,” he said. “If local refineries are not properly regulated, a monopoly could harm the market.”
Gillis-Harry urged the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to ensure fair competition, while calling on the NNPCL to supply adequate crude to local refiners to sustain operations.
NNPCL and major marketers adjust pump prices
Amid ongoing price adjustments, the Nigerian National Petroleum Company Limited (NNPCL) has reduced its retail petrol price by ₦10, dropping from ₦955 to ₦945 per litre.
However, pump prices still vary across NNPCL outlets, ranging between ₦920 and ₦928 per litre in Lagos, depending on the location. Major marketers like Eterna Plc and Bovas Energy also revised their prices to ₦945 and ₦935, respectively.
The Dangote Refinery has assured Nigerians of a steady fuel supply throughout the festive season, promising that its production will stabilize the market despite tariff-induced price shifts.
Oando suspends petrol imports as Dangote dominates
In a major market shift, Oando Plc has suspended petrol imports due to the growing dominance of the Dangote Refinery.
According to a Punch report, the company said its trading revenue fell by 20% year-on-year to ₦2.5 trillion, largely because of reduced import activity and rising domestic refining capacity.
In its H1 and nine-month 2025 reports, Oando noted a 42% drop in gross profit to ₦113 billion, but a 164% rise in net profit to ₦210 billion, driven by strong crude production and recoveries.
“Refined product volumes are under pressure due to Dangote’s success in meeting Nigeria’s fuel needs,” Oando said, adding that it had diversified into crude oil, gas, and LNG trading to adapt to the new reality.
The company traded 21 crude cargoes (19.8 million barrels) in the first nine months of 2025 — up from 15 in 2024 — and is now focusing on gas and metals trading to build a more resilient energy portfolio.
A new energy order
With Dangote Refinery’s 650,000 barrels-per-day capacity transforming the nation’s downstream sector, Nigeria appears to be entering a new era of fuel independence.
Source: Getty Images
But experts warn that sustaining balance between local production and fair competition will determine whether Tinubu’s tariff becomes the bridge, or the burden, he promised.
Tinubu approves 15% import duty on petrol, diesel
Legit.ng earlier reported that President Bola Tinubu approved a 15% import duty on Premium Motor Spirit (PMS), also known as petrol, and Automotive Gas Oil (AGO), commonly known as diesel.
The approval, dated October 21, 2025, was conveyed by Damilotun Aderemi, the president’s private secretary, following a request by the Federal Inland Revenue Service (FIRS).
The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the Attorney General of the Federation were also copied.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
