The cost of importing petrol into Nigeria has dropped sharply following the recent decline in global crude oil prices, creating fresh competition for local refiners, including the $20 billion Dangote Refinery.
Imported Petrol Now Cheaper Than Dangote Refinery
New data released by the Major Energy Marketers Association of Nigeria (MEMAN) shows that the landing cost of imported Premium Motor Spirit (PMS), also known as petrol, has fallen to N1,117 per litre as of June 4, 2026. This figure is now significantly lower than Dangote Refinery’s gantry price of N1,250 per litre, leaving a difference of N133 per litre. The development comes days after the mega refinery reduced its ex-depot petrol price from N1,275 to N1,250 per litre in response to changing market conditions.
Imported Fuel Gains Price Advantage
The latest MEMAN pricing template suggests that fuel importers may now enjoy a competitive edge over domestic refiners as international crude prices continue to soften. Aside from petrol, the landing costs of other petroleum products also recorded notable declines. According to the data, diesel landing cost dropped to N1,470 per litre, compared to Dangote Refinery’s price of N1,700 per litre. Aviation Turbine Kerosene (ATK), commonly known as aviation fuel, also fell to N1,426 per litre, while Dangote’s price remains N1,650 per litre. MEMAN estimated the exchange rate for fuel imports at N1,366.85 per dollar, reflecting the prevailing official foreign exchange rate at the time of the calculation.
Crude Oil Prices Decline Globally
The sharp reduction in fuel landing costs is closely tied to falling crude oil prices in the international market. Oil prices reportedly dropped by nearly 3% amid growing optimism that tensions in the Middle East could ease following ceasefire discussions involving Israel and Lebanon. Global benchmark Brent crude reportedly declined by $2.82, or 2.88%, to trade at $94.99 per barrel. Meanwhile, U.S. benchmark West Texas Intermediate (WTI) crude fell by $3.19, or 3.32%, to $92.83 per barrel. Market analysts believe investors reacted positively to signs that diplomatic efforts could reduce threats to the Strait of Hormuz, one of the world’s most important oil shipping routes. Reports indicate that Israel and Lebanon agreed to implement a ceasefire arrangement, raising expectations of broader negotiations involving Iran and the United States. Iran had reportedly tied any potential agreement partly to an end to hostilities involving Hezbollah, the Iran-backed group operating in Lebanon.
What It Means for Nigerians
The decline in petrol landing costs may eventually translate into lower pump prices if marketers pass the savings on to consumers. However, industry experts say exchange rate volatility, logistics costs and distribution margins will continue to play major roles in determining retail fuel prices across Nigeria. The price gap between imported fuel and locally refined products could also intensify competition in the downstream oil sector in the coming weeks as marketers seek cheaper supply options.
Dangote Refinery Releases Fresh Petrol Prices
Legit.ng earlier reported that barely 24 hours after announcing a reduction in the price of premium motor spirit (PMS), commonly known as petrol, Dangote Refinery has adjusted its ex-depot price upward, joining several other fuel depot operators in responding to renewed volatility in the global oil market. The latest development comes after the refinery had cut petrol prices twice within two days, lowering its ex-depot rate from N1,275 per litre to N1,250 per litre. However, fresh market data now indicate a reversal of that trend, as rising crude oil prices continue to influence domestic fuel prices.
