Petrol Imports Rise as Marketers Abandon Dangote Refinery Amid Pricing Dispute

Petrol Imports Rise as Marketers Abandon Dangote Refinery Amid Pricing Dispute

From March 17 to 23, 2025, Nigeria’s petroleum marketers and retailers imported a total of 154.22 million litres of Premium Motor Spirit (PMS), signaling a shift away from sourcing petrol from the Dangote Refinery. This move comes amid a decision by Dangote Refinery to suspend its petroleum product sales in Naira, which has disrupted the supply chain……….READ MORE

According to the Nigerian Port Authority (NPA), several vessels carrying 115,000 metric tonnes of PMS will dock at various ports, including Tincan and Lekki Deep Seaport in Lagos and the Calabar Port in Cross River State. This is in stark contrast to the initial expectations that the Dangote Refinery, which imports crude oil for processing, would meet more of the local demand for refined fuel.

The increased petrol imports come after a dispute between Dangote Refinery and the Nigerian National Petroleum Corporation Limited (NNPCL) over a Naira-for-crude sale agreement. Dangote’s 650,000 barrels per day refinery had previously provided domestic fuel but is now diversifying its operations due to this unresolved issue.

Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority noted that the country’s three operational refineries provide less than 50% of the nation’s daily petrol needs, with imports filling the gap.

As for the financial aspect, the landing cost for imported PMS dropped to between N774 and N797 per litre by March 12, 2025, compared to Dangote Refinery’s ex-depot price, which was between N815 and N825 per litre. This price difference has further fueled the shift in preference toward imported products.

The situation underscores the challenges Nigeria faces in meeting its fuel demand, despite the presence of local refineries.