The Independent Petroleum Marketers Association of Nigeria (IPMAN) has stated that the Dangote Refinery played a crucial role in preventing petrol prices from soaring to between N5,000 and N6,000 per litre in Nigeria. According to IPMAN's spokesman, Chinedu Ukadike, the ongoing geopolitical tensions involving Iran, the United States, and Israel have disrupted the global crude oil supply market. However, Nigeria was shielded from the full impact of these disruptions due to increased domestic refining capacity, particularly from the Dangote Refinery.
Impact of Dangote Refinery on Petrol Prices
Ukadike emphasized that without the Dangote Refinery, the combination of a rising exchange rate and high crude oil prices would have driven petrol prices to unaffordable levels. He noted that the refinery's output has helped stabilize fuel supply in the domestic market and moderate price increases in the downstream petroleum sector. He stated, “Nigeria is no longer dependent on petrol product imports. I want to tell you today that petroleum products would have been around N5,000 or N6,000 per litre without Dangote Refinery.”
Improved Product Availability
The IPMAN spokesman further highlighted that product availability across the nation has improved significantly, making shortages a rarity. This stability prevents drastic price increases in the global market from spilling over into the domestic scene. The consistent supply from the Dangote Refinery has been a key factor in maintaining affordable prices for consumers.
Recent Petrol Price Adjustments
Recently, the Dangote Refinery reduced its ex-depot price of petrol from N1,275 per litre to N1,250 per litre, a decrease of N25. This adjustment has led to varying pump prices across filling stations. In the Igando area of Lagos, prices ranged from N1,272 to N1,295 per litre, depending on the retailer. For instance, Toluwalase Petroleum sold at N1,272 per litre, while MRS Oil Nigeria Plc and Ardova Plc sold at N1,279 and N1,280, respectively. NNPC Retail had the highest price in the area at N1,295 per litre. In Abeokuta, Ogun State, an NNPC retail station also sold at N1,295 per litre.
Competition from Imported Petrol
Meanwhile, the cost of importing petrol into Nigeria has dropped sharply due to a decline in global crude oil prices. According to data from the Major Energy Marketers Association of Nigeria (MEMAN), the landing cost of imported Premium Motor Spirit (PMS) fell to N1,117 per litre as of June 4, 2026. This figure is significantly lower than Dangote Refinery’s gantry price of N1,250 per litre, creating a difference of N133 per litre. This development introduces fresh competition for local refiners, including the Dangote Refinery.
Conclusion
The Dangote Refinery has been instrumental in preventing a petrol price crisis in Nigeria, saving consumers from potential prices of N5,000 to N6,000 per litre. While recent reductions in global crude oil prices have made imported petrol cheaper, the refinery's role in ensuring domestic supply stability remains critical. As the market evolves, continued monitoring of price trends and supply dynamics will be essential.
