A shift has emerged in Nigeria’s downstream petroleum market as the cost of importing Premium Motor Spirit (PMS) fell below the gantry price offered by the Dangote Petroleum Refinery, following a recent upward price adjustment by the Lekki-based facility.
Industry data from the Major Energies Marketers Association of Nigeria (MEMAN) indicate that the landing cost of imported petrol stood at N728.88 per litre as of last week. This is significantly lower than the new gantry price announced by the Dangote refinery on Monday night.
The 650,000 barrels-per-day refinery raised its ex-depot price of petrol from N699 to N799 per litre, creating a price gap of about N70 per litre between imported PMS and locally refined supply from Dangote. The increase effectively reverses the pricing advantage the refinery had enjoyed over importers since December.
Following the adjustment, Dangote disclosed that its retail partner, MRS Oil, would sell petrol at N839 per litre. Spot checks on Tuesday confirmed that MRS filling stations had implemented the new price, up from N739 per litre recorded on Monday.
Explaining the development, the refinery said the price change reflected the end of a temporary festive-period intervention. According to the company, earlier price reductions were deliberately introduced to cushion consumers during heightened year-end spending and were not intended to be permanent.
The refinery stated that the festive discount had been offered at a sustainable but temporary level to promote affordability and market calm, adding that prices had now been “modestly realigned” to support long-term market stability.
Dangote Petroleum Refinery reiterated its commitment to uninterrupted nationwide supply of PMS, noting that it had absorbed significant costs in the national interest during successive festive periods. It recalled providing logistics support in 2024 and implementing price reductions in 2025 to ease consumer burden.
“Despite the price reduction, many filling stations failed to reflect the new price at the pump, thereby denying Nigerians the benefits,” the company said. “With the festive period concluded, PMS prices have been realigned to sustainable levels.”
Chief Executive Officer of the refinery, David Bird, said the facility currently supplies about 50 million litres of petrol daily to the domestic market, with evacuation and distribution running normally across the country. He added that the refinery’s flexible design allows it to process a wide range of crude and intermediate feedstocks, ensuring continued PMS production even during planned maintenance.
“As a domestic producer, the Dangote Petroleum Refinery continues to shield the Nigerian market from import-related volatility and external supply disruptions,” Bird said, describing the company as a stabilising force in the downstream sector.
Before the latest price adjustment, the landing cost of imported petrol had consistently remained above Dangote’s previous ex-depot price of N699 per litre, making it difficult for importers to compete with Dangote-backed retail outlets. This dynamic changed after Aliko Dangote, president of the Dangote Group, reduced the gantry price by N129 per litre in December, a move he said was aimed at ensuring petrol sold for no more than N740 per litre during the Yuletide and discouraging imports.
Dangote had also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of issuing what he described as “reckless” import licences at a time when his storage tanks were full. While marketers complained of losses following the price cuts, Dangote said he was also absorbing significant financial losses.
NMDPRA data showed that petrol imports declined from 52.1 million litres per day in November to 42.2 million litres per day in December, while Dangote refinery’s domestic supply increased from 19.5 million litres per day to 32 million litres per day over the same period.
Sources within the Dangote Group said the December price reduction was strictly seasonal and that Monday’s announcement merely returned prices to prevailing market realities.
“We didn’t increase prices; we only realigned them to where they should be,” one source said. “The reduction was clearly linked to the festive season.”
However, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, argued that the earlier price cuts were aimed at dominating the market. He warned that Nigerians could face risks if a single supplier became too dominant and called for a level playing field for all stakeholders.
Dangote has repeatedly denied monopoly accusations, maintaining that he has never prevented others from building refineries, but insisting that continued importation while local tanks are full amounts to economic sabotage.
With imported petrol now cheaper on paper, market watchers say it remains uncertain whether importers will pass on the lower landing costs to consumers or price competitively against Dangote-backed outlets in the coming weeks.