The Federal Government has approved the importation of 830,000 metric tonnes of Premium Motor Spirit (PMS), commonly known as petrol, for the fourth quarter of 2026, as Nigeria prepares for increased fuel demand during the Christmas and New Year festivities. The approval comes as the Dangote Petroleum Refinery reduces its petrol prices below estimated import landing costs, intensifying competition between locally refined and imported petroleum products.
FG Names Six Approved Petrol Importers
According to The PUNCH, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) issued the permits in mid-September. According to Petroleumprice.ng, the six companies granted import permits are Matrix Energy, AA Rano, AYM Shafa, NIPCO, Pinnacle Oil and Bono Energy.
The marketers have featured prominently in the government's petrol import programme throughout 2026. Their combined allocation stood at 180,000 metric tonnes in the first quarter before rising to 720,000 metric tonnes in the second quarter. The third-quarter allocation exceeded 800,000 metric tonnes, while the latest approval of 830,000 metric tonnes represents a further increase ahead of the festive season.
The additional imports are intended to strengthen supply as marketers prepare for increased petrol consumption during the final months of the year.
Dangote Challenges Continued Petrol Imports
The fresh approvals come amid an ongoing legal dispute between Dangote Refinery and the downstream regulator over the continued issuance of petroleum product import licences. Dangote has approached the Federal High Court, seeking to invalidate import licences issued in circumstances where it argues that domestic production is sufficient to meet Nigeria's requirements.
The matter is scheduled for further hearing on October 7, 2026. The refinery maintains that it has sufficient production capacity to satisfy domestic petrol demand while supplying export markets. The latest import permits nevertheless indicate that imported petrol will remain part of Nigeria's supply arrangements despite expanding domestic refining capacity.
Dangote Cuts Petrol Price Below Import Costs
Meanwhile, Dangote Refinery reduced its gantry price from ₦1,350 to ₦1,325 per litre on September 21, placing it below the latest reported import parity benchmark. The Major Energies Marketers Association of Nigeria (MEMAN) had estimated petrol import costs at between ₦1,364.02 and ₦1,365.02 per litre as of September 17.
Using that benchmark, Dangote's revised price is approximately ₦39 to ₦40 per litre cheaper than imported petrol, although import costs may have changed since then.
Local Refineries Dominate Petrol Supply
Despite increasing import allocations, Nigeria's dependence on foreign petrol has declined. NMDPRA figures cited in industry reports indicate that domestic refineries supplied approximately 76.7% of Nigeria's petrol requirements in the first quarter of 2026.
Petrol imports also fell by about 60% year-on-year to approximately 965.5 million litres during the period. The fourth-quarter approvals provide additional supply options, but actual import volumes will depend on marketers' commercial decisions and prevailing prices.
For Nigerian motorists, the combination of cheaper locally refined petrol and additional import capacity could ease supply pressures ahead of Christmas, although lower wholesale prices do not automatically translate into equivalent reductions at filling stations.
FG Moves to Crash Petrol Prices Nationwide
Legit.ng earlier reported that the federal government has taken steps to address rising petrol prices, with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announcing plans to convene a consultative meeting with key players in the downstream petroleum sector. The NMDPRA said the meeting, scheduled for Tuesday, September 22, 2026, will bring together refiners, depot owners, marketers and retailers to discuss the pricing of Premium Motor Spirit (PMS) and other petroleum products.
