Independent oil marketers in Nigeria have imported approximately ₦436 billion worth of petrol within just nine days, highlighting escalating tensions with the Dangote Petroleum Refinery over pricing and supply dynamics.
Surge in Fuel Imports Amidst Refinery Dispute
Between May 11 and 20, 2025, independent marketers brought in about 496.17 million litres of petrol, equivalent to 370,000 metric tonnes, at an average landing cost of ₦879.48 per litre. This substantial importation, totalling over ₦436 billion, underscores a growing preference among marketers for international suppliers over domestic options like the Dangote Refinery.
Reasons Behind the Shift
Industry insiders attribute this shift to several factors:
-
Competitive Pricing: Marketers find that international suppliers offer more favourable pricing compared to the Dangote Refinery.
-
Operational Challenges: Unscheduled maintenance at the Dangote facility has led to reduced output, prompting marketers to seek alternative sources to meet demand.
-
Business Terms: Concerns over the refinery’s pricing model and business conditions have made imports a more attractive option for many marketers.
ALSO READ: Dangote Credits Naira-for-Crude Deal for Recent Petrol Price Reduction
Dangote Refinery’s Position
Aliko Dangote, President of the Dangote Group, has expressed concerns over the refinery’s sustainability amidst these challenges. He highlighted the ongoing struggle against entrenched interests and the reluctance of major marketers to engage with the refinery, despite its increased production capacity.
Legal and Regulatory Context
In a related development, the Dangote Refinery has initiated legal action against the Nigerian Midstream and Downstream Petroleum Regulatory Agency (NMDPRA) and the Nigerian National Petroleum Company Limited (NNPC). The refinery contends that the continued issuance of import permits undermines domestic refining efforts and seeks ₦100 billion in damages. A Nigerian judge recently dismissed NNPC’s objection to the lawsuit, allowing the case to proceed.
