Dangote Refinery Lowers Petrol Prices Below Imports

The Dangote Petroleum Refinery has set its gantry price for Premium Motor Spirit (PMS) at N1,265 per litre, which is N46 lower than the prevailing import-parity price of N1,310.64 per litre, according to the Major Energies Marketers Association of Nigeria (MEMAN). Despite a recent increase from N1,165 to N1,265, Dangote's petrol remains cheaper than imported alternatives.

MEMAN also reported a coastal PMS price of N1,245 per litre, highlighting the competitive edge of locally refined products. The Independent Petroleum Marketers Association of Nigeria (IPMAN), represented by National Publicity Secretary Chinedu Ukadike, expressed concerns that imported petrol is now more expensive than locally refined fuel, questioning the economic logic of continued imports.

The report indicates that imported PMS constituted approximately 43% of fuel supplied in Nigeria in July, creating uncertainty in domestic demand. Dangote has warned that rising imports could affect its production planning and inventory management, potentially leading to surplus stocks being exported if local demand cannot absorb them.