Dangote Refinery Crashes Petrol Prices N46 Lower Than Imported Fuel, as Depot Rates Hold Steady
- The Dangote Refinery petrol is now selling way cheaper than imported petrol, despite the Nigerian Midstream and Downstream Petroleum Authority issuing more import licences
- Current data from major importers show that imported petrol is almost N50 per litre higher than Dangote Refinery's N265 price
- The development comes as depot operators have maintained a steady price, yet still higher than the rates offered by the mega refinery
PAY ATTENTION: Mark Legit.ng as a preferred source, and our content will appear higher in your Google feed!
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Imported petrol is becoming increasingly difficult to justify economically as the latest industry data shows that Premium Motor Spirit (PMS) from the Dangote Petroleum Refinery is about N46 per litre cheaper than the prevailing import-parity price.
The latest energy bulletin of the Major Energies Marketers Association of Nigeria (MEMAN) puts Dangote’s gantry price at N1,265 per litre, compared with a spot import-parity price of N1,310.64 per litre under the ASPM benchmark.
Source: UGC
Under another benchmark, the spot import-parity price stood at N1,309.63 per litre.
The figures mean imported petrol costs N45.64 more per litre than Dangote’s locally refined product under the ASPM benchmark and N44.63 more under the NPSC-NOJ benchmark.
Dangote price still below imported fuel
The price gap is particularly significant because Dangote recently increased its gantry price from N1,165 to N1,265 per litre, representing a N100 increase.
Despite that adjustment, the refinery’s petrol remains cheaper than the cost benchmark for imported fuel.
MEMAN also reported Dangote’s coastal PMS price at N1,245 per litre, reinforcing the price advantage enjoyed by locally refined products.
The seven-day average ICE petrol price was put at $1,337.96 per metric tonne, while the import-parity calculation reflects the estimated cost of bringing refined petrol into Nigeria.
That benchmark is important because it provides a basis for comparing the economics of imported products with fuel refined domestically.
Fresh pressure on petrol imports
The widening price difference could intensify calls for the Federal Government to reconsider the continued issuance of petrol import licences.
Independent Petroleum Marketers Association of Nigeria (IPMAN) has previously argued that imported petrol is now more expensive than locally refined fuel and that continued imports could worsen price volatility.
IPMAN National Publicity Secretary Chinedu Ukadike said the licences were expected to create competition and help moderate domestic fuel prices, but argued that the outcome had been the opposite.
According to him, imported products were being offered to marketers at prices significantly higher than Dangote’s supplies.
He also raised concerns about the impact of fuel imports on the naira, arguing that purchasing petrol from offshore markets places additional pressure on foreign exchange.
The report quoted marketers as questioning the economic logic of purchasing a product that costs more than locally refined alternatives.
Dangote warns about rising imports
The pricing debate comes amid growing tension between domestic refining and imported petrol.
Dangote has previously warned that rising petrol imports were affecting its ability to plan production and maintain commercially viable inventories.
The refinery said imported PMS accounted for approximately 43 per cent of fuel supplied into Nigeria in July, creating uncertainty around domestic demand.
It warned that where locally produced petrol cannot be absorbed by the domestic market, surplus stocks could ultimately be exported to regional and international markets.
The refinery has also raised concerns about imported petrol being blended with its products, arguing that such practices could make it difficult to distinguish between fuel supplied directly by Dangote and products handled by third parties.
Lagos depot prices remain competitive
Meanwhile, depot prices show that Dangote remains the cheapest listed PMS supplier among the depots covered in the report.
In Lagos, Dangote sells at N1,265 per litre, followed by MRS at N1,267.
Aiteo, Ascon, Integrated, NIPCO, Rain Oil and Sahara were listed at N1,280 per litre, while Pinnacle stood at N1,290.
In Port Harcourt, Liquid Bulk, Masters, Sigmund and T.S.L. offered PMS at N1,287 per litre. Stockgap was at N1,295, while Matrix recorded N1,310.
In Warri, Keonamex, Nepal and Optima sold at N1,295, Parker and Prudent at N1,298, and Matrix at N1,300.
In Calabar, Hong Petroleum and Northwest were listed at N1,295, Soroman at N1,300, while Fynefield, Matrix and Sobaz stood at N1,310.
What the price gap means for consumers
The latest figures strengthen the argument that domestic refining can provide a significant cost advantage when international product prices and foreign exchange costs push up the price of imported petrol.
Source: Getty Images
However, the benefit to motorists will ultimately depend on how depot prices translate into retail pump prices.
For now, the key development is clear: even after Dangote’s latest N100 price increase, its N1,265 per litre gantry price remains below the N1,310.64 import-parity benchmark.
That N45.64 gap could become an important factor in Nigeria’s downstream petroleum debate, particularly as policymakers weigh the benefits of import competition against the growing capacity of domestic refineries.
Diesel price crosses N2,000 per litre
Legit.ng earlier reported that a recent surge in diesel prices across Nigeria has exceeded ₦2,000 per litre, impacting both businesses and consumers.
As families and industries brace for escalating transport and operational costs, the stark contrast in pricing among various Lagos depots raises critical questions about the future stability of the diesel market.
Source: Legit.ng
