The landing cost of imported Premium Motor Spirit (petrol) has fallen below the gantry price of the product from the Dangote Petroleum Refinery, following the refinery’s recent price hike.
Data from the Major Energies Marketers Association of Nigeria (MEMAN) show that the landing cost of imported petrol stood at N728.88 per litre as of last week.
However, on Monday night, the Dangote refinery announced an increase in its petrol gantry price from N699 to N799 per litre, making its price about N70 higher than the current landing cost of imported PMS.
Following the adjustment, the refinery disclosed that petrol would now sell at N839 per litre at MRS filling stations. Checks by our correspondent on Tuesday confirmed that MRS outlets raised pump prices from N739 on Monday to N839, in line with the announcement by the 650,000 barrels-per-day Lekki refinery.
In a statement issued Monday night, the refinery said the petrol price was modestly realigned because the festive period had ended. It explained that the earlier reduction was a temporary support measure aimed at cushioning Nigerians during a period of high household spending.
The refinery reaffirmed its commitment to market stability and uninterrupted nationwide petrol supply, recalling that it had absorbed high costs during two consecutive festive seasons in the national interest.
“Despite the price reduction, many filling stations failed to reflect the new price at the pump, thereby denying Nigerians the benefits. With the festive period concluded, PMS prices have been modestly realigned to sustainable levels to support long-term market stability and affordability,” the statement said.
Under the new arrangement, the PMS gantry price is N799 per litre, while MRS retail outlets sell at N839 per litre.
The Chief Executive Officer of Dangote Petroleum Refinery, David Bird, said the refinery continues to supply about 50 million litres of PMS daily, with evacuation and distribution operating nationwide.
He noted that the refinery’s flexible design allows it to process a wide range of crude and intermediate feedstocks, ensuring uninterrupted PMS supply even during planned maintenance.
“As a domestic producer, Dangote Petroleum Refinery continues to shield the Nigerian market from import-related volatility and external supply disruptions,” Bird said.
Before Monday’s adjustment, the landing cost of imported petrol had remained above Dangote’s ex-depot price of N699 per litre, making it difficult for importers to compete with Dangote-backed MRS filling stations.
In December, the President of the Dangote Group, Aliko Dangote, had slashed petrol prices by N129 to ensure Nigerians bought petrol below N740 per litre during the Yuletide and to discourage importation.
Dangote had also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of issuing import licences while his tanks were full. NMDPRA data later showed that petrol imports dropped from 52.1 million litres per day in November to 42.2 million litres per day in December, while Dangote’s supply rose from 19.5 million to 32 million litres per day.
Sources within the Dangote Group said the December price cut was strictly festive, stressing that the latest move was a return to market realities.
“We didn’t increase prices; we only realigned them. The reduction was for the festive season, and now that it is over, prices have been adjusted accordingly,” one source said.
Meanwhile, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, said Dangote reduced prices earlier to dominate the market.
He warned that Nigerians would better understand the implications once the refinery becomes the sole supplier, urging regulators to ensure a level playing field for all stakeholders.
Dangote has repeatedly denied monopoly claims, insisting that importing petrol while his tanks were full amounted to economic sabotage.
It remains unclear whether petrol importers will now sell at prices lower than Dangote’s.
