Dangote Refinery's Incessant Price Slash Affects Petrol Imports, Marketers Devise New Strategy
- Petroleum product marketers have announced plans to temporarily halt petrol import amid Dangote Refinery’s price change
- On Friday, November 8, 2025, the mega refinery lowered its ex-depot price for petrol, leading to losses for depot operators
- Reports say the marketers said they would halt petrol imports in the meantime to monitor domestic market developments
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The latest price cut by Dangote Petroleum Refinery has disrupted Nigeria’s downstream oil market, forcing petroleum marketers to reconsider their reliance on fuel imports.
The refinery, which reduced its ex-depot price of Premium Motor Spirit (PMS) by ₦49 per litre on Friday, November 7 now sells at ₦828 per litre, down from ₦877.
Source: Getty Images
This marks its second major adjustment in three months, intensifying competition and shifting the balance of power in the domestic supply chain.
Major marketers admitted that the reduction has made petrol importation less viable, especially with the Federal Government’s 15% import tariff on refined products, which further tilts the market in favor of locally refined fuel.
According to a Punch report, industry operators say Dangote’s move could make fuel imports unprofitable, as imported products now land at a higher cost than the refinery’s price.
“Imports will stop for now” — Marketers admit
Clement Isong, Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), said Dangote’s new pricing structure is a game changer.
“It would stop imports now, definitely, since imports are higher than Dangote’s price. That is the logical thing,” he said.
Isong explained that Dangote, as a private refiner, sets prices based on import parity, which considers global crude costs, freight, and logistics.
He said the refinery monitors 30-day average prices rather than daily fluctuations, adding that economies of scale, vessel size, and storage capacity influence landing costs.
According to Isong, “Dangote’s gantry price of ₦828 per litre has remained stable. If the spot market continues to rise, he’ll have to adjust upwards; otherwise, he risks leaving money on the table.”
Marketers warn of possible fuel scarcity
Despite the optimism around local refining, not everyone is celebrating. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that abruptly halting imports could lead to shortages.
PETROAN President Billy Gillis-Harry said imported products still complement the 30–35 percent local production from refineries like Dangote’s.
“If import stops, product unavailability will increase. Dangote’s production alone can’t meet national demand,” he explained.
He also raised concerns over loading delays at Dangote’s facility, saying some marketers who have paid for products are yet to receive supplies. Harris urged the government to reconsider the 15 percent import tariff to prevent potential disruptions in supply.
Numbers behind the petrol import turmoil
Data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that Nigeria’s average import parity price for petrol stood at ₦824.10 per litre as of November 7, 2025.
This figure factors in a ₦1,470/$ exchange rate, 25 percent freight, and other port charges.
At the ports, the spot landing price was estimated at ₦830.80 per litre, slightly higher than Dangote’s ₦828 per litre rate. Retail prices currently hover between ₦850 and ₦950, depending on location and marketer.
Source: Getty Images
With the new 15 percent import duty set to take effect later this month, the price gap between imported and locally refined petrol is expected to widen further, solidifying Dangote Refinery’s growing dominance and reshaping the economics of Nigeria’s fuel market.
New petrol price emerges at filling stations
Legit.ng earlier reported that a fresh twist has emerged in Nigeria’s fuel market as Dangote Refinery’s latest petrol price reduction triggers mixed reactions across the country.
Despite the refinery’s decision to lower its ex-depot (gantry) price of Premium Motor Spirit (PMS) by ₦49 per litre, most filling stations have yet to pass the benefit to motorists, with pump prices still hovering above ₦900 per litre nationwide.
The refinery’s new rate of ₦828 per litre, down from ₦877, represents a 5.6% decrease, marking the company’s second major downward review in three months.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
