By LEVI JOHNSON
Nigeria’s downstream oil sector has entered another turbulent phase as fresh data show that imported petrol is cheaper than Dangote fuel by a significant margin of N77 per litre.
The latest figures released by the Major Energies Marketers Association of Nigeria (MEMAN) reveal that the average landing cost of imported Premium Motor Spirit (PMS) now stands at N721.80 per litre, while the Dangote Refinery’s gantry price is N799 per litre.
That difference — N77.20 per litre — has reignited debate across the energy sector. Industry players are now asking difficult questions about pricing efficiency, logistics costs, and whether domestic refining is delivering the relief Nigerians were promised.
MEMAN Data Sparks Fresh Market Debate
According to MEMAN’s pricing template released on February 7, 2026, marketers importing petrol can currently land the product at a significantly lower cost than lifting directly from the Dangote Refinery.
This development is striking. For months, expectations remained high that local refining would reduce Nigeria’s dependence on imports and eventually push prices down. However, the reality on the ground suggests that market dynamics remain more complex.
The fact that imported petrol is cheaper than Dangote fuel could influence immediate supply decisions. Marketers focused on cost efficiency may temporarily tilt toward imports, especially as consumers struggle with declining purchasing power.
Still, the situation remains fluid.
Dangote Refinery Blames Coastal Logistics
In response to growing concerns, the Dangote Refinery recently argued that its pricing structure reflects broader logistical realities rather than inefficiency.
The refinery insists that coastal delivery costs, particularly within Lagos distribution channels, significantly inflate the final market price of petrol. According to its internal assessment, coastal logistics can add approximately N75 per litre to PMS costs.
Dangote officials warned that if such additional charges flow through the supply chain unchecked, pump prices could approach N1,000 per litre.
From the refinery’s perspective, marketers who lift directly from its gantry and manage inland logistics efficiently should save money. However, current MEMAN data indicate that, at least for now, imported petrol is cheaper than Dangote fuel even before factoring in retail margins.
That contrast has intensified scrutiny within the sector.
Pump Prices Remain High Despite Lower Landing Cost
While landing costs appear favorable for importers, retail pump prices across Nigeria tell a different story.
Checks across major filling stations in Abuja show PMS selling between N839 and N905 per litre. Outlets operated by NNPCL, MRS, Mobil, AP, AA Rano, Ranoil, and other independent marketers maintain prices well above both the Dangote gantry rate and the import landing cost.
This gap between landing cost and pump price exposes persistent inefficiencies in Nigeria’s fuel distribution chain.
Transportation expenses, depot charges, storage fees, distribution margins, and regulatory uncertainties all contribute to the final retail price. Therefore, even when imported petrol is cheaper than Dangote fuel, consumers may not immediately feel the impact.
Supply Chain Inefficiencies Under Spotlight
Energy analysts argue that the pricing disparity highlights structural issues rather than a simple competition between imports and domestic refining.
Although Nigeria now hosts one of the world’s largest single-train refineries, logistics infrastructure remains fragmented. Road haulage dominates fuel movement nationwide, and this adds heavy costs due to poor road conditions, security risks, and long transit times.
Moreover, depot operators and independent marketers often adjust margins based on perceived market risks. Consequently, savings at the landing stage do not always translate into lower pump prices.
In effect, the debate extends beyond whether imported petrol is cheaper than Dangote fuel. It now centers on how efficiently Nigeria can move refined products from source to consumer.
Competitive Undercutting Intensifies
Meanwhile, private depot owners and independent marketers have begun adjusting prices strategically to remain competitive.
Following Dangote’s gantry price adjustment to N799 and retail benchmark near N839, some operators opted to undercut the refinery-linked structure. This competitive maneuvering has created a fragmented pricing landscape across states.
In certain locations, marketers price slightly below Dangote-aligned stations to attract customers. However, the reductions remain marginal when compared to the broader landing cost advantage.
The competition is real. Yet, the impact on consumers remains gradual.
What This Means for Consumers and the Economy
For everyday Nigerians, the central concern remains simple: when will petrol prices fall meaningfully?
The emergence of a N77 per litre gap suggests that price competition could intensify in the short term. If importers sustain lower landing costs and maintain stable exchange rates, pump prices may soften.
However, broader economic variables still play decisive roles. Exchange rate volatility, global crude prices, freight costs, and domestic transportation challenges can quickly reverse current advantages.
At the same time, policymakers face pressure to ensure transparency across the pricing chain. Without improved efficiency in distribution and storage, savings at the import stage will continue to evaporate before reaching the pump.
A Critical Moment for Nigeria’s Energy Reform
The revelation that imported petrol is cheaper than Dangote fuel comes at a sensitive time for Nigeria’s energy reforms.
The Dangote Refinery was widely expected to stabilize the downstream sector and shield the country from external price shocks. While the refinery remains operationally significant, market realities show that logistics and commercial strategy matter just as much as refining capacity.
As competition between imported fuel and locally refined petrol deepens, stakeholders will watch closely to see which model delivers consistent affordability.
For now, one fact stands clear: the downstream sector is evolving rapidly, and pricing battles are far from over.
Whether this N77 gap marks a temporary fluctuation or signals a deeper structural shift will become clearer in the weeks ahead.
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