FG Introduces Conditional Petrol Import Framework as Dangote Refinery Updates PMS Pricing
The Nigerian downstream petroleum sector is undergoing a significant transformation as the Federal Government refines the framework governing petrol imports. This strategic shift coincides with the Dangote Refinery announcing updated Premium Motor Spirit prices, marking a pivotal moment in the nation's energy landscape.
High-Level Stakeholder Meeting Addresses Import Permits
On Friday, February 20, 2026, a crucial stakeholders' meeting was convened by Engr. Saidu Aliyu Mohammed, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority. The gathering brought together key industry players, including representatives from the Depot and Petroleum Products Marketers Association of Nigeria, to deliberate on the country's petrol import permit framework.
The central focus was balancing expanding domestic refining capacity with lingering supply risks. Stakeholders reviewed fuel supply projections for the first quarter of 2026, assessing whether local production could sufficiently meet national demand. While acknowledging improved output from domestic refineries, regulators emphasized that import permits would not be issued automatically.
Instead, licenses will only be released when clear supply imbalances are identified. This conditional approach aims to prevent artificial shortages while avoiding unnecessary imports that could disrupt local refining economics. Authorities have already approved import permits for Automotive Gas Oil and Aviation Turbine Kerosene following observed gaps in those segments.
Reconciliation Efforts with Dangote Refinery Intensify
The meeting occurred amid ongoing reconciliation efforts between depot owners and the Dangote Refinery regarding supply terms and pricing dynamics. Industry sources describe this engagement as part of a broader process designed to better align domestic refining output with distribution realities across Nigeria.
Depot operators recognized the refinery's growing contribution to national petrol stock levels, particularly after the restreaming of its PMS production. However, marketers stressed the importance of a predictable and transparent supply framework that accommodates local production while allowing room for supplementary imports if shortfalls arise.
Modular refineries were also acknowledged for strengthening domestic supply volumes and enhancing Nigeria's energy security position.
Safety Concerns Take Center Stage
Beyond pricing and imports, stakeholders addressed the persistent issue of tanker-related road accidents, which continue to pose significant risks to lives and property. Participants called for:
- Stricter enforcement of safety standards
- Improved coordination among regulatory bodies
- Stronger compliance monitoring across the value chain
This push for enhanced safety reflects growing recognition that sector stability extends beyond supply figures to operational discipline on the ground.
Dangote Refinery's Market Dominance and Pricing
The development comes as Dangote Refinery resumed petrol sales, setting prices at N774 per litre. This new rate emerged after the refinery completed reconciliation talks with depot owners and unveiled authorized marketers nationwide.
Fresh data reveals that Nigeria's downstream petroleum market has entered a new phase after Dangote Refinery supplied 62 percent of the country's Premium Motor Spirit in January 2026, overtaking fuel importers for the first time. According to the Nigerian Midstream and Downstream Petroleum Regulatory Authority, total average daily PMS supply stood at 64.9 million litres in January.
Of that volume, domestic refineries accounted for 40.1 million litres per day, while imports by Oil Marketing Companies and the Nigerian National Petroleum Company Limited contributed 24.8 million litres daily.
A Delicate Balance for Nigeria's Downstream Sector
Nigeria's downstream petroleum market is navigating a sensitive transition. On one hand, domestic refining capacity is expanding, led by large-scale investments and modular refinery growth. On the other, the system still requires flexibility to manage supply fluctuations without triggering scarcity or price volatility.
As reconciliation efforts with the Dangote Refinery continue and the import permit framework evolves, regulators emphasize that sustained dialogue will remain central to maintaining transparency and adequacy of supply. Depot owners have reaffirmed their commitment to constructive engagement, signaling a shared understanding that stability in the fuel market is a collective responsibility.
The coming months will test how effectively this conditional import strategy supports both local production and national energy security, while ensuring that Nigeria's growing refining capacity translates into reliable and affordable fuel supplies for consumers across the nation.
