The landed cost of imported premium motor spirit (petrol) is now lower than the gantry price of the product from Dangote Oil Refinery following the latter’s decision to increase prices. punch I will report.
As of last week, the landed cost of imported petrol was N728.88 per liter, according to data from the Nigeria Major Energy Market Association.
However, on Monday night, Dangote Refinery announced that it would increase the gantry price of petrol from Naira 699 to Naira 799 per liter. The new price increase means that Dangote’s gantry price is about N70 more than the landed cost of an imported PMS.
As a result of the new price increase, the refinery said MRS filling stations will now sell petrol at N839 per liter. A check by our correspondent on Tuesday confirmed that MRS petrol stations increased prices from N739 to N839 on Monday following the announcement of the 650,000 barrels per day Lekki refinery.
The refinery said in a statement Monday night that it had readjusted its gasoline prices conservatively as the festive period ended. The company explained that the reductions are at a sustainable level as they support long-term market stability and affordability.
The refinery reaffirmed its commitment to market stability and uninterrupted supply of gasoline nationwide.
It was recalled that during the recent festive period, deliberate and temporary price support interventions were implemented to cushion the rising household expenditure of Nigerians.
According to the statement, this was the second consecutive Christmas season in which refineries absorbed higher costs in the national interest, such as logistics support in 2024 and price reductions in 2025 to promote affordability and market calm.
“Despite the price reduction, many petrol stations were unable to reflect the new prices at the pumps, and as a result, Nigerians were not able to benefit from the price reduction. “With the festive period over, we have made efforts to support long-term market stability and affordability. “Under the current adjustment, the PMS gantry price is N799 per litre, while MRS retailers are selling it at N839 per litre,” the statement declared.
Dangote Refinery CEO David Bird said the refinery continues to supply approximately 50 million liters of PMS daily to the domestic market and that national evacuations and distribution are proceeding as normal.
He said the flexibility of the refinery’s design allows for the processing of a wide range of crude oil and intermediate feedstocks, allowing for continued supply of PMS during planned maintenance activities. He said this capacity will ensure that domestic supplies are stable and uninterrupted.
“As a domestic producer, Dangote Oil Refinery continues to be a stabilizing force in the downstream oil sector, protecting the Nigerian market from import-related fluctuations and external supply disruptions. Dangote Oil Refinery remains focused on providing energy security, price stability and long-term value to Nigerians,” the statement concluded.
Punch reports that before Monday’s price adjustment, the landed cost of imported petrol was pegged at a rate above the Dangote Refinery ex-warehouse price of 699 Naira per liter. As a result, many importers found it difficult to sell petrol at competitive prices compared to Dangote-backed MRS filling stations.
Dangote Group Managing Director Aliko Dangote said when he cut the gantry price of petrol by N129 in December, it was to ensure that Nigerians could buy petrol at a price not exceeding N740 during the Christmas period. He added that it was also aimed at blocking imports.
Dangote accused the Nigeria Midstream and Downstream Petroleum Regulatory Authority of issuing a “reckless” import license in November when the tanks were full. When market players said they were losing money due to the price crash, Dangote replied that he was also losing more money.
According to the NMDPRA report, gasoline imports decreased from 52.1 million liters per day in November to 42.2 million liters per day in December. Meanwhile, Dangote’s supply increased from 19.5 million liters per day to 32 million liters per day over the same period.
Dangote Group sources told our correspondent that the price cuts made in December were mainly for Christmas and Monday’s announcement would only bring petrol prices back to where they should be.
“We did not increase prices. We just readjusted petrol prices to where they should be. When we lowered prices in December, we told Nigerians that it was mainly for the festive season. Now that the festive season is over, it is normal to adjust prices to reflect market realities,” one of the sources said.
However, National Chairman of the Petroleum Products Retail Store Owners Association of Nigeria, Billy Gillis-Harry, said Dangote Group President Aliko Dangote reduced the price of PMS to take the market from other competitors.
According to him, Nigerians will quickly realize what the billionaire can do with petroleum products the moment he becomes their sole supplier. Mr. Gillisharry urged that all stakeholders in the sector should be given a level playing field.
Recall that Mr. Dangote had repeatedly debunked the monopoly claim, saying no one had ever stopped the construction of the refinery. But he argued that importing gasoline when the tanks are full amounts to economic sabotage.
It remains to be seen whether importers will sell petrol at a lower price than Dangote.