Fuel Marketers Anxious Over Dangote Refinery Price Delay as Import Costs Soar

Oil marketers in Nigeria have voiced their growing concern over the delayed announcement of the price for Premium Motor Spirit (PMS) from the newly inaugurated Dangote Petroleum Refinery. As the cost of importing PMS continues to rise, hitting an estimated N1,120 per litre, dealers fear that an uncompetitive price from the refinery could trigger a surge in fuel imports, undermining the benefits of domestic production.

The Nigerian National Petroleum Company (NNPC) recently raised petrol prices, with pump rates climbing to between N855 and N897 per litre last week. Some independent dealers have even priced their fuel above N1,000 per litre, reflecting the escalating import costs and the broader inflationary pressures gripping the sector.

Marketers are now actively engaging with foreign partners, exploring the possibility of importing PMS, should the Dangote refinery’s price fail to offer a competitive alternative. AbubakarMaigandi, President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), stated that marketers are awaiting the Dangote refinery’s price but are preparing to turn to imports if necessary.

“If the landing cost from our foreign partners is cheaper than Dangote’s, we will import the product,” Maigandi said. He emphasised that the open market system allows for competition and ensures a stable supply, but cautioned that Dangote’s pricing would be a decisive factor in determining whether Nigeria can reduce its dependency on imported fuel.

Dangote Group officials remain confident, with one anonymous source affirming that Aliko Dangote, the group’s president, is committed to reducing fuel prices for Nigerians. The official cited Dangote’s success in lowering diesel prices as evidence of his commitment to the local market.

“Alhaji Aliko Dangote is a nationalistic man who loves this country, and he’s ready to make sacrifices for the masses,” the source said, noting that the refinery’s entry into the PMS market has already sparked concerns among foreign importers who rely on the lucrative West African shipping trade.

The official dismissed reports of a stalemate between the Dangote refinery and the NNPC, stating that Dangote would proceed with local sales regardless of NNPC’s involvement. “We will sell PMS in Nigeria whether or not the NNPC agrees to be the off-taker,” the source declared.

Meanwhile, NNPC has made clear that it has no plans to monopolise the market or set prices for domestic refiners. In a recent statement, NNPC emphasised that the Dangote refinery and others are free to sell directly to marketers on a “willing buyer, willing seller” basis, insisting that it would only off-take PMS from Dangote if the price is competitive against international markets.

This uncertainty has deepened concerns that Nigeria’s fuel importation costs, which currently consume an estimated N2 trillion monthly, may persist for the foreseeable future—at least until the government’s refineries are fully operational. The continued reliance on imports underscores the challenges facing the sector as it navigates fluctuating global prices, exchange rate pressures, and the complexities of local production.

As negotiations between the Dangote refinery and NNPC remain unresolved, Nigeria’s fuel market is bracing for a period of volatility, with the spectre of soaring prices and ongoing import reliance looming large.