Marketers to Suspend Petrol Imports Amid Price Cut by Dangote Refinery

Petroleum marketers in Nigeria have announced a temporary halt to petrol imports following a significant price reduction by the Dangote Petroleum Refinery, citing uncompetitive cost structures and a shifting downstream landscape. Industry operators indicated that the refinery’s latest drop in ex-depot price has rendered importation unprofitable, prompting marketers to pause further influx of refined Premium Motor Spirit (PMS) into the country.

Last Friday, the Dangote refinery slashed its gantry price of petrol to ₦828 per litre, from a prior rate of ₦877—a decrease of ₦49 per litre, representing a 5.6 percent cut. According to the Major Energy Marketers Association of Nigeria (MEMAN), this pricing now sits below the average “into-tank” cost of imported petrol in Lagos, making imports unviable under current land-ed costs.

MEMAN Executive Secretary, Clement Isong, asserted: “Imports will stop for now, definitely, since imports are higher than Dangote’s price. That is the logical thing.” He stressed that the cost of landing imported PMS—including freight, customs, and logistics—combined with the newly imposed 15 percent import tariff on refined products, leaves importers with slim margins or losses.

Industry sources revealed that Nigeria’s average import-parity price for petrol stood at about ₦830 or higher per litre prior to the latest cuts, when factoring in overseas refined product rates, freight, sub-Saharan logistics and foreign-exchange pressures. With the local refined product now being sold at ₦828 per litre, the margin for imported supplies has virtually disappeared.

Marketers also expressed concern that continuing to import refined products under these conditions would lock in losses until domestic rates adjust. One importer indicated that many short-term contracts have been suspended and cargo commitments deferred while the market recalibrates.

However, the decision to halt imports has sparked caution among stakeholders over potential shortages. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) warned that local refining output, though increasing, is still insufficient to meet national demand alone—estimated at more than 60 percent of supply previously met by imports. PETROAN’s President, Billy Gillis‑Harry, pointed out that abrupt suspension of imports could risk product unavailability and price spikes in the coming weeks, especially if demand remains unchanged.

Analysts say the development underscores how the Dangote refinery is reshaping Nigeria’s downstream fuel market. The facility, designed to process up to 650,000 barrels per day, is now leveraging its cost advantage to undercut imported supply and capture market share. With the landed cost of imports rising due to freight and foreign-exchange pressures, domestic refined fuel is gaining a dominant place.

The federal government’s newly introduced 15 percent tariff on imported petrol and diesel—a measure intended to protect local refining investment—has also tightened the gap. With importers facing higher duty burdens, marketers say the equilibrium has shifted markedly in favour of locally refined fuel.

For consumers, the hope is that the refinery’s price cut will translate into relief at the pump. Nonetheless, Retail surveys across Lagos and Abuja over the weekend showed pump prices remaining above ₦900 per litre in many stations, signalling a lag between ex-depot pricing and retail pass-through. Some marketers explained that they are still running down high-cost inventory bought at previous rates and are cautious about reducing prices aggressively until cost conditions stabilise.

Driving this shift are structural factors: larger scale of the Dangote refinery, proximity to key markets, avoidance of port handling and freight expense, and the favourable tariff regime. Imported refined products, by contrast, incur full maritime freight, port charges and inland logistics, which inflate landing costs.

With import stop-gaps emerging, the federal government is being urged to monitor supply‐chain risks. Should local refining not fully absorb market demand, Nigeria could face thin-product days followed by retail spikes. The petroleum regulator has been advised to ensure that downstream players do not withhold supplies or create artificial scarcity during the transition.

In the medium term, industry participants believe this moment may mark the beginning of a broader shift: imported refined fuel giving way to locally-refined supplies as the dominant source. They view the suspension of imports as both a signal of confidence in local refining capacity and a strategic overnight adjustment by marketers recognising changing economics.

However, the timing and scale of the transition remain critical. Until the full volume from domestic refineries fills the gap previously met by imports—and until pump stations reflect lower landed costs—some volatility may persist in pricing and availability. Consumers, for now, remain on watch to see whether the industry shift results in meaningful relief at the local pump.