Imported Premium Motor Spirit (PMS), commonly known as petrol, has become cheaper than supplies from the Dangote Petroleum Refinery, setting the stage for renewed competition in Nigeria's downstream oil sector. According to the Major Energies Marketers Association of Nigeria (MEMAN), imported petrol landed at N1,191.16 per litre as of July 27, 2026, compared with N1,215 per litre offered by the Dangote Refinery. This creates a price gap of nearly N24 per litre, giving importers a fresh competitive edge in the domestic market.
Global Oil Prices Rebound After Sharp Decline
International crude oil prices staged a strong recovery on Wednesday, July 29, 2026, after heavy losses the day before. Data from Oilprice.com shows Brent crude climbed 4.16 per cent to $87.59 per barrel, while West Texas Intermediate (WTI) rose 4.13 per cent to $82.53 per barrel at the time of reporting. The rebound followed renewed concerns over global oil supplies after military tensions resurfaced in the Middle East. The market also reacted to a larger-than-expected decline in US crude inventories, reinforcing fears of tighter supply.
Geopolitical Tensions Drive Volatility
Just 24 hours earlier, oil prices had dropped by about seven per cent after reports suggested a temporary easing of hostilities between the United States and Iran, raising hopes of a diplomatic breakthrough. However, investor sentiment shifted after the US Central Command (CENTCOM) disclosed that Iranian forces launched multiple ballistic missiles toward US military bases across the Middle East. Although all the missiles were intercepted without causing damage, the incident renewed concerns over the stability of one of the world's most important oil-producing regions. The situation escalated further after reports indicated that US and Saudi forces carried out precision strikes on logistics and weapons facilities in eastern Iraq. While the operation did not directly target Iran, traders interpreted the fresh military activity as a sign that geopolitical risks remain high.
Imported Petrol Now Undercuts Dangote Refinery
Despite the rebound in global crude prices, Nigeria's major fuel marketers say imported petrol is currently landing at a lower cost than products supplied by the Dangote Refinery. MEMAN's pricing template also showed that Automotive Gas Oil (AGO), popularly known as diesel, landed at N1,606 per litre, while Dangote's ex-depot price stood at about N1,605 per litre. Aviation fuel recorded a landing cost of N1,614 per litre, compared with N1,351 per litre from the refinery. The latest pricing is expected to intensify competition among fuel suppliers as marketers seek to leverage cheaper import costs to gain market share.
IPMAN's Call to Halt Import Licences Contrasts with Market Reality
The development contrasts with recent calls by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which urged the Federal Government to suspend the issuance of fuel import licences, arguing that locally refined petroleum products should be prioritised over imports. With imported petrol now undercutting Dangote's ex-depot price, analysts say pricing strategies across the downstream sector could come under fresh pressure in the coming weeks as marketers adjust to changing international oil market conditions.
Depots Cut Petrol Prices Following Dangote's Naira Sales Move
Legit.ng earlier reported that petrol depot owners have begun reducing the prices of Premium Motor Spirit (PMS) following Dangote Refinery's decision to resume the sale of petroleum products in naira, offering a measure of relief to marketers, motorists and consumers across Nigeria. The latest price adjustment comes despite the continued surge in global crude oil prices, which had recently pushed domestic petrol prices to fresh highs. Global oil prices have remained strong in recent weeks due to supply concerns and geopolitical developments.
