Despite increasing its ex-depot price of Premium Motor Spirit (petrol), in the last one week, Dangote Petroleum Refinery’s cost still remains lower than imported products.
Pinnacle Daily’s analysis of available trade data shows that the landing cost of imported petrol in Nigeria has risen above the ex-depot price offered by Dangote Refinery despite periods of price adjustments.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) indicates that locally refined fuel maintains a clear cost advantage over foreign imports.
The latest MEMAN’s Competency Centre Energy Bulletin shows that the spot price of imported petrol as of August 25, 2026, stood at ₦1,232.58 per litre.
Dangote Refinery, which had dropped its gantry price to ₦1,165, raised it to ₦1,185 and subsequently to ₦1,200 per litre in the past one week following a surge in crude oil prices in the international market.
Crude, which had fallen to between $82 and $85 per barrel, rose above $93 per barrel in recent days, forcing the refinery to adjust its ex-depot price in response to the market condition.
However, despite the price adjustment, the refinery’s price still remains lower than the cost of imported ones.
This price relationship is not static, as the cost advantage has reportedly switched between Dangote and imports several times in the past year due to volatile global oil prices and currency fluctuations.
However, checks revealed that the refinery’s price has remained lower than landing cost of imports in recent times.
The lasted data on import cost reflects an increase from ₦1,211.64 per litre on August 20, 2026.
Market analysts have attributed the cost advantage of domestic refined products over imported ones to escalating global crude oil cost coupled with foreign exchange and freight pressures.
This comes as Dangote Refinery has expressed concern over continued issuance of import licences, saying the rise in importation of petrol has forced it to export surplus products despite having the capacity to meet Nigeria’s domestic demand.
In a statement released on Wednesday, the company stated that while it remains fully committed to supporting the country’s energy security and ensuring uninterrupted fuel availability across the country, the volume of imported petrol entering the market competing with domestic product poses a challenge.
It said the there is a lack of transparency over the volume of imported petrol expected into Nigeria, which has created uncertainty in domestic demand planning and inventory management.
The refinery stated that market data available to it informed that imported petrol accounted for approximately 43 per cent of the fuel supplied into the Nigerian market in July and wondered why the need for such large-scale imports when there is availability of substantial domestic refining capacity.
“In an environment where significant volumes of imported PMS continue to enter the market through licences issued by the regulator, and where there is limited visibility on future import volumes, it becomes commercially unsustainable to continue holding excess inventory indefinitely,” the refinery stated.
The refinery’s data, however, contradicts that of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which had stated that domestic petrol supply dropped by 21 percent from 32.5 million litres per day in June, while petrol imports increased by 9 per cent from 18.1 million litres per day.
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It said its export volume was increased in recent months “not because local demand cannot be met, but because excess inventory generated by market uncertainty must be evacuated to avoid unnecessary storage and financing costs.”
The refinery also warned that the company should not be held responsible for supply shortfalls if they result from large imports that distort the market and make it difficult to predict domestic demand.
Analysts have noted that the resurgence of domestic fuel refining championed by the Dangote Refinery in the last two years in Nigeria has sparked intense competition between the 650,000 barrels facility and major marketers and importers.
While some downstream industry stakeholders have argued that allowing petrol importation to continue puts unnecessary pressure on foreign exchange, others have countered it, saying it was essential to diversify supply sources and prevent monopoly.
However, economic experts have continued to urge the authorities to create a conducive environment that encourages domestic refining as part of measures to drive the country’s energy security agenda.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X