Imported petrol has become cheaper than fuel produced by the Dangote Petroleum Refinery, following a recent increase in the refinery’s gantry price. Data from the Major Energies Marketers Association of Nigeria show that the landing cost of imported Premium Motor Spirit (PMS) stood at ₦728.88 per litre last week, undercutting Dangote’s new ex-depot price.
On Monday night, the 650,000-barrels-per-day Lekki-based refinery raised its petrol gantry price from ₦699 to ₦799 per litre, creating a price gap of about ₦70 compared to imported fuel. The adjustment was immediately reflected at MRS filling stations, where pump prices jumped from ₦739 to ₦839 per litre, according to checks conducted on Tuesday.
Dangote Refinery explained that the price change was a “modest realignment” after the festive period, noting that earlier reductions were temporary interventions to ease household spending pressures. The company said it had absorbed high costs during the holidays to support affordability and market calm, but needed to return prices to sustainable levels to ensure long-term stability.
Chief Executive Officer of Dangote Refinery, David Bird, said the facility continues to supply about 50 million litres of petrol daily, with nationwide distribution operating smoothly. He added that the refinery’s flexible design allows it to process different crude feedstocks, ensuring uninterrupted local supply even during maintenance periods and shielding Nigeria from import-related volatility.
Industry reactions remain mixed. While Dangote maintains that importing petrol when local storage tanks are full amounts to economic sabotage, retail outlet owners argue that the December price cuts were aimed at market dominance. With imported petrol now cheaper on paper, analysts say the coming weeks will reveal whether importers can retail fuel below Dangote-backed stations—and how that will reshape competition in Nigeria’s downstream petroleum sector.
source: punch