Dangote Refinery’s Price Slash May End Petrol Imports in Nigeria as Marketers Shift Focus to Local Supply
Nigeria’s petroleum market is bracing for a major shift as marketers consider halting petrol imports following a fresh price cut by Dangote Petroleum Refinery. The refinery, Africa’s largest, slashed its ex-depot price of Premium Motor Spirit (petrol) by ₦49 per litre last Friday—reducing the gantry price from ₦877 to ₦828. The move is already reshaping the downstream oil sector and making imported petrol less competitive.
Industry experts say the refinery’s decision has fundamentally altered fuel pricing dynamics. The Executive Secretary of the Major Oil Marketers Association of Nigeria (MOMAN), Clement Isong, told The PUNCH that the new pricing structure makes fuel imports “unviable” in the short term. He explained that the Dangote Refinery now operates below import parity levels—the benchmark cost of bringing fuel into Nigeria—leaving little room for marketers to import profitably.
The timing of Dangote’s price adjustment coincides with the Federal Government’s plan to impose a 15 percent import tariff on refined petrol later this month, further tipping the balance in favor of locally refined products. However, some stakeholders have cautioned against an immediate halt to importation. The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, warned that local production, currently estimated at 30 to 35 percent of national demand, is still insufficient to meet consumption needs.
Gillis-Harry confirmed that PETROAN members are already purchasing from Dangote Refinery but raised concerns about loading delays. He urged the government to review the new import tariff downward to prevent fuel shortages and maintain market stability. Despite the refinery’s growing influence, he noted that imported petrol still plays a complementary role in bridging domestic supply gaps.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) shows that Nigeria’s average import parity price of petrol currently stands at ₦824.10 per litre. With Dangote Refinery selling at ₦828 per litre—just below the import threshold—the price difference underscores the refinery’s emerging dominance in the local energy market. Analysts say this trend signals a turning point for Nigeria’s fuel independence and could reshape the country’s import-driven energy economy.
source: punch