Imported Petrol Lands N24 Cheaper Than Dangote Refinery as Global Oil Prices Swing
- Major marketers revealed that imported petrol landed at N1,191.16 per litre as of July 27, 2026, undercutting Dangote Refinery's price
- The price gap emerged amid sharp swings in global crude oil, which fell 7% on July 28 before rebounding
- IPMAN had asked the federal government to stop issuing import licences, arguing that local refinery products were cheaper
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Imported Premium Motor Spirit (PMS), commonly known as petrol, has become cheaper than supplies from the Dangote Petroleum Refinery, setting the stage for renewed competition in Nigeria's downstream oil sector.
The latest development comes as global crude oil prices continue to experience sharp swings, driven by renewed geopolitical tensions in the Middle East and changing market fundamentals.
Source: Getty Images
Crude oil prices rebound after sharp decline
International crude oil prices staged a strong recovery on Wednesday, July 29, 2026, after heavy losses the day before.
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Dangote breaks silence on fuel price hike, explains return to naira sales amid supply fears
According to Oilprice.com, Brent crude climbed 4.16 per cent to $87.59 per barrel, while West Texas Intermediate (WTI) rose 4.13 per cent to $82.53 per barrel at the time of filing this report.
The rebound followed renewed concerns over global oil supplies after military tensions resurfaced in the Middle East.
The market also reacted to a larger-than-expected decline in US crude inventories, reinforcing fears of tighter supply.
Just 24 hours earlier, oil prices had dropped by about seven per cent after reports suggested a temporary easing of hostilities between the United States and Iran, raising hopes of a diplomatic breakthrough.
However, investor sentiment shifted after the US Central Command (CENTCOM) disclosed that Iranian forces launched multiple ballistic missiles toward US military bases across the Middle East.
Although all the missiles were intercepted without causing damage, the incident renewed concerns over the stability of one of the world's most important oil-producing regions.
The situation escalated further after reports indicated that US and Saudi forces carried out precision strikes on logistics and weapons facilities in eastern Iraq.
While the operation did not directly target Iran, traders interpreted the fresh military activity as a sign that geopolitical risks remain high.
Imported petrol now cheaper than Dangote's supply
Despite the rebound in global crude prices, Nigeria's major fuel marketers say imported petrol is currently landing at a lower cost than products supplied by the Dangote Refinery.
According to the latest data released by the Major Energies Marketers Association of Nigeria (MEMAN), imported petrol landed at N1,191.16 per litre as of July 27, 2026, compared with N1,215 per litre offered by the Dangote Refinery.
The figures indicate a price gap of nearly N24 per litre, creating fresh opportunities for importers to compete more aggressively in the domestic market.
MEMAN's pricing template also showed that Automotive Gas Oil (AGO), popularly known as diesel, landed at N1,606 per litre, while Dangote's ex-depot price stood at about N1,605 per litre.
Aviation fuel recorded a landing cost of N1,614 per litre, compared with N1,351 per litre from the refinery.
Fresh competition looms in downstream market
The latest pricing is expected to intensify competition among fuel suppliers as marketers seek to leverage cheaper import costs to gain market share.
Source: Getty Images
The development also contrasts with recent calls by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which urged the Federal Government to suspend the issuance of fuel import licences, arguing that locally refined petroleum products should be prioritised over imports.
With imported petrol now undercutting Dangote's ex-depot price, analysts say pricing strategies across the downstream sector could come under fresh pressure in the coming weeks as marketers adjust to changing international oil market conditions.
Depots cut petrol prices
Legit.ng earlier reported that petrol depot owners have begun reducing the prices of Premium Motor Spirit (PMS) following Dangote Refinery's decision to resume the sale of petroleum products in naira, offering a measure of relief to marketers, motorists and consumers across Nigeria.
The latest price adjustment comes despite the continued surge in global crude oil prices, which had recently pushed domestic petrol prices to fresh highs.
Global oil prices have remained strong in recent weeks due to supply concerns and geopolitical developments.
Source: Legit.ng
