Tag: petrol

Local refining of premium motor spirit (PMS) or petrol is experiencing a boost capable knocking off importation of the product.

Analysts believed there could be dramatic changes in the structures of the downstream petroleum sector barring any disruption to local refining operations of the product.

Data released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) showed that out of an average 74.2 million litres of petrol supplied daily last month, imported petrol accounted for 42.2 million litres per day, while 32 million litres were supplied by local refineries, essentially due to an increased supply from the Dangote refinery. The 42.2 million litres daily import in December 2025 was a 19 per cent reduction from that of the preceding month of November which was 52.1 million litres daily.

Although the Dangote refinery boast of the capacity to supply 50 million litres daily, the NMDPRA figures indicated that Refinery significantly bolstered depot stocks by supplying an average of 32 million litres per day in December 2025, representing a 64 per cent increase from the previous month.

Interestingly, despite the rise of product supply from the Dangote refinery, importers brought in 1.5 billion litres of petrol in November 2025 to cover shortages in September and October 2025.

READ ALSO: Why Northern Nigeria must put education first

But the tide seems to have slowed down. So far this year, Nigeria’s imported petrol stocks in depots have seen a sharp decline as local refining capacity increases.

The influx of locally refined products is now changing the dynamics in the sector leading to what may be termed a “price war” at private depots this year. As of early January 2026, private depots such as Eterna, Integrated and Aiteo were selling at N710 to N800 per litre.

On the reverse, local refiners like Dangore refinery has maintained its ex gantry price at N699.

Initially, despite lower depot prices, average retail pump prices remained higher, often between N890 to N910 per litre, however, most retailers are now being compelled by market forces to crash their price to matching that of MRS filling station- a major partner with Dangote Refinery , to sell at N739 and N770 per litre. As of early January 2026, private depots raised prices, with some selling imported petrol at around N800 per litre, while Dangote sold at lower rates.

Beneath the pricing war is the potential danger refining locally poses for private depots. An oil and gas consultant, Mayowa Sodipo, argued that with local refining now finding its bearing in the country, private depots will be grossly affected. He explained that towards the close of last year and beginning of this year, the shift from an import-dependent model to a local supply model caused traditional, independent private depots to experience reduced throughput, shrinking margins and a loss of market share, with many facing an existential crisis as of late 2025.

“The resurgence of local petrol refining has impacted on satellite petrol depots, fundamentally restructured their operations,’ Sodipo said.

According to him, private depots now experience a declining throughput especially for those of such facilities located in Lagos, which he said experienced utilisation rates falling below 40 per cent in late 2024 as imports dropped.

Besides, he noted that the involvement of the Dangote Refinery, which has shifted to selling directly to large marketers and consumers using its own fleet of 4,000 CNG trucks, bypassing traditional third-party depot intermediaries, will greatly take a toll on the depots.

He cited reports in September 2025 which indicated that private, independent depots were being bypassed, with many marketers preferring direct, cheaper supply from the refinery. He added that the naira for crude policy for local refiners has made it possible for them to supply the market at lower prices, forcing depot owners to cut their own prices, reducing their margins and, in some cases, forcing them to sell at a loss.

“While Dangote reduced its gantry price to N699 per litre, other marketers and independent depot owners were forced to align with higher rates or face, with some still struggling to keep up with the lower prices.

“The era where private, independent depots held a monopoly on fuel distribution is over. Local refining has transformed these depots from essential storage and distribution hubs into, in some cases, stranded assets or underutilised facilities, as the market moves towards direct, factory-to-station delivery,” Sodipo argued.

The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, in an interview cast doubt on petrol importation at the moment. “Well, since Dangote has reduced his price, and we have not complained of a shortage of products. So, you will find out that the supply chain is stable. So, that one, literally, has also cancelled all these accusations and counteraccusations on petrol importation. I don’t think anybody is importing within this period on that regime. Nobody is importing now. I’m sure that nobody is importing. So, all the supplies we are getting now are from Dangote. You know Dangote has also opened up the market for independent marketers,’’ he said.

Although the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) maintains that it is not against local refining and are ready to source products locally if terms are fair, they want local refineries to provide products at competitive prices and ensure open access, similar to international market dynamics.

Besides is the subsidy demand from local refineries they seek, especially coverage of cost on freight, NIMASA/NPA costs, to cover expenses, arguing it is necessary to compete with cheaper imported products.

Sodipo contended that the shift to local refining threatens their import-focused depot infrastructure, especially with the Association’s members feeling their traditional role is already being diminished with local refining.

Industrialist and business tycoon, Femi Otedola, also a former DAPPMAN member, urged depot owners to pivot from holding tanks to owning last-mile retail outlets, a strategy for the new self-sufficient era.

Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday suspended the proposed implementation of the 15 per cent of valorem import duty on imported Premium Motor Spirit (PMS) and Diesel, triggering concerns across sections of stakeholders.

According to a statement posted on its X handle earlier, Director, Public Affairs Department, NMDPRA, George Ene-Ita, stated that the 15 per cent import duty was “no longer in view”.

“It should also be noted that the implementation of the 15 per cent ad-valorem import duty on imported Premium Motor Spirit and Diesel is no longer in view,” NMDPRA stated.

The agency assured of adequate supply of products noting that it would continue to closely monitor the supply situation and take appropriate regulatory measures to prevent distruption of supply and distribution of petroleum products across the country, especially during this peak demand period.

Ogun State Chamber of Commerce, Industry, Mines and Agriculture (OGUNCCIMA) and Nigerian Coalition of Civil Society Organisations (NCCSO) have faulted suspension. Other stakeholders however said the decision would save the country from market distortions and potentially disruptive effects that could undermine recent gains in improvement in average living costs and disinflation.

OGUNCCIMA’s President, Niyi Oshiyemi, described the suspension as a setback to Nigeria’s economic reform drive and a missed opportunity to protect local refiners, particularly the Dangote Refinery and other modular refining initiatives.

“The suspension of the 15 per cent fuel import tariff is disappointing. The policy was a step in the right direction to promote local refining, reduce dependence on imports, conserve foreign exchange and create a fair competitive environment for domestic producers. Its reversal sends a wrong signal to investors who have shown confidence in Nigeria’s energy sector,” Oshiyemi said.

He noted that implementing the tariff would have helped to stabilise the naira by curbing excessive demand for foreign exchange used in fuel importation.

He added that local refineries need firm policy backing to thrive, warning that continuous reliance on imported fuel would make the economy vulnerable to external shocks.

Read Also: Senate seeks urgent construction of Ode–Omifufu–Ofosu road to link Ondo, Edo

He said: “The Dangote Refinery alone has the capacity to meet Nigeria’s domestic fuel needs and even export to other African countries. Supporting such investments with protective policies like the import tariff is not just economic common sense; it is a matter of national interest”.

He urged the Federal Government to reconsider its decision and reintroduce the policy after consultations with key stakeholders in the oil and gas industry.

He emphasised that sustainable industrial growth requires consistency in policy direction, noting that frequent policy reversals discourage private sector participation and hinder long-term development.

While acknowledging the government’s concern about potential short-term price increases, Oshiyemi maintained that the long-term gains including job creation, forex savings and increased energy security far outweigh any temporary inconvenience.

He reaffirmed OGUNCCIMA’s commitment to advocating policies that protect local industries and promote economic diversification.

He said: “We believe in reforms that empower Nigerian investors and strengthen our productive base. The 15 per cent tariff was one of such reforms, and we urge the government to revisit it in the national interest”.

In a statement signed by its National Spokesperson, Comrade Mustapha Ahmed, NCCSO noted that the decision to suspend the implementation of the tax has given importers time to flood the market with imported fuel, thereby undermining local production and discouraging investment.

It added: “In fact it is a strategic victory for foreign fuel importers and their local collaborators, whose agenda is to keep Nigeria dependent on imported products and frustrate the growth of local refineries such as Dangote Refinery and other modular plants ready for operation”.

The coalition argued that the deferment to first quarter 2026 was wrong and should be totally discouraged, with no further extensions.

It stated: “The government must resist pressures from international traders and uphold its commitment to energy independence. All relevant agencies should monitor imports to prevent market distortion during the deferment period.

 “The deferment is a temporary win for importers but a setback for Nigeria’s refining future. NCCSO urges President Tinubu to remain resolute and protect Nigeria’s local industries from external manipulation”.

Two oil marketing groups, Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) and the Independent Petroleum Marketers Association of Nigeria (IPMAN), yesterday differed over the impact of the alleged adjustment of the gantry price of petrol by Dangote Refinery.

While PETROAN lamented that the development was capable of running oil marketers out of business, IPMAN said it was a good development as it aligned with the provision of the Petroleum Industry Act (PIA) which is the full deregulation of the downstream oil sector.

Industry sources yesterday said the plant adjusted its Premium Motor Spirit (PMS) price from N835 per litre to N825 per litre. But Dangote has not made any formal announcement about the adjustment.

The present adjustment and previous impromptu shift of the price jolted the players in the industry since it affected market stability.

Predictability has become a major challenge in the petrol market, deterring numerous dealers and retailers from operating their outlets.

Read Also: Haba Nipco, 40k for 20k petrol! (1)

Although some of the marketers described it as a ploy to discourage importation, the PETROAN National President, Dr. Billy Harry who spoke with The Nation on phone said: “We have been holding a meeting on the price since morning to discuss how to attack this kind of thing because the way it is going, we will be run out of business.”

Asked to respond to the state of the petrol market, he said, “It is tough.”

Continuing, he admitted that the new gantry prices was N825 per litre, stressing  that “Dangote keeps shifting back the price everyday.”

IPMAN National President Alhaji Abubakar Maigandi differed from PETROAN.

He said at the time of the telephone interview with The Nation, the private refinery was still supplying the product at N835 per litre.

The IPMAN boss, however, noted there was a likelihood of price adjustment to N825 per litre later today.

Maigandi was elated that the Petroleum Industry Act (PIA) that culminated in the full deregulation of the oil market was in full force.

According to him, energy security was guaranteed as the retail outlets were always wet with products.

On the incessant price adjustment, the IPMAN National President said, it usually affected marketers with old stock in the filling stations or on the way from the depots.

He advised that the only way to cope with the situation was to keep selling the stock because it might depreciate further as Dangote Refinery would adjust the price downward unannounced at any time.

Asked how was the petrol market, Maigandi said: “From the gantry the price is still N835 per litre. Up till now, he is applying N825 per litre. But I don’t know if it will be adjusted to N825/l in the evening or tomorrow.

“For those with old stock, the adjustment usually cause them losses. But the joy is petrol is available. Even if you stock it because of his lower price, Dangote will still bring down the price so the best thing is to keep selling it.”

The House Committee on Midstream has summoned petroleum depots that fell short of requirements to appear before it in Abuja with comprehensive working documents within seven days.

The Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) disclosed this in its X handle yesterday.

According to the NMDPRA, the “Federal House of Representatives Committee on Midstream led by Honorable Odianosen Henry Okojie undertook a three day facility visit to depot locations in Delta State namely Koko, Warri and Oghara, as part of the Committee’s oversight functions and core mandate.

Read Also: Reps name 19-member committee to oversee emergency rule in Rivers state

“The few depots that fell short of the Committees’ requirements were summoned to appear before them in Abuja within seven days with comprehensive operations working documents.”

The Authority did not disclose the names of the few depots that failed to meet its standards or requirements.

NMDPRA said Okojie praised the Authority Chief Executive Engr. Farouk Ahmed and his Management Team for their effective supervision and monitoring engendering positive compliance from industry players.

Petrol imports surged by 105.3 per cent, reaching N15.42 trillion in 2024, from the N7.51 trillion recorded in 2023. This was contained in the latest data on foreign trade statistics released by the National Bureau of Statistics (NBS), yesterday. The development comes despite current increasing domestic refining capacity, and the ongoing rehabilitation of state-owned refineries.

Previously, the country had spent N2.01trillion on fuel imports in 2020; in 2021, this figure more rose to N4.56 trillion, or 126.9 per cent; N7.71 trillion or 69.1 per cent in 2022, before recording a marginal decline of 2.6 per cent to N7.51 trillion in 2023.

However, riding on the back of a 40.9 per cent depreciation of the naira, in 2024, the import a 105.3 per cent increase to N15.42 trillion, the highest on record.

Despite the rise in local refining, production remains insufficient in meeting demands, necessitating continuous dependence on importation.

Supply chain inefficiencies, and persistent demand-supply imbalances, foreign exchange fluctuations, among other factors, have also militated against meeting local demands, as the rising cost of petrol imports continues to strain government finances and consumer purchasing power.

In December 2024, the Nigeria National Petroleum Company Limited (NNPCL) announced the restart of the 125,000 barrels per day (bpd) Warri Refinery and Petrochemical Company (WRPC), which was approved for rehabilitation in 2021 for $897 million.

Read Also: Truckers partner NTVOA for smooth port operations, reduce costs

The Port Harcourt Refining Company (PHRC), with a total installed capacity of 210,000bpd, recently restarted operations at its old plant, which currently produces 60,000bpd.

The Major Energies Marketers Association of Nigeria (MEMAN), may have thrown its weight behind continued importation on the grounds that it fosters competition and potentially stabilising prices.

The Executive Secretary, MEMAN, Clement Isong, said: “What importation does for us is that it contributes to the market competitiveness. The price movements you are enjoying and the market competition are the result of importation. Importation is useful.”

He nonetheless clarified that the Association is not against local refining, and desires it as well, but “what ensures that we have the most competitive price is that locally refined fuel prices have to compete with imported prices. That is what keeps our prices at the pump as low as possible,” he asserted.