Nigeria's petrol landing cost climbed to N1,420 per litre as of Wednesday, September 16, 2026, placing significant strain on fuel marketers replenishing inventories through international channels. The figure, which reflects the estimated cost of importing Premium Motor Spirit (PMS) including product price, shipping, insurance, and related charges, now sits N70 above Dangote Petroleum Refinery's current gantry price of N1,350 per litre.
Widening Gap Creates Two-Tier Market Dynamics
The widening gap is creating a two-tier market dynamic. Marketers who bought stock at earlier, lower prices can still sell competitively, while those restocking now face a sharply higher acquisition cost that is difficult to pass on in a competitive market. Some depot operators in parts of Nigeria are already selling below Dangote Refinery's gantry price, further squeezing margins for import-dependent operators.
At 4:30 am West Africa Time on Wednesday, September 16, Brent crude was trading at $107.50 per barrel, down 1.11%, while West Texas Intermediate (WTI) stood at $104.30 per barrel, a decline of 1.46%. Despite the dip in early trade, Brent remained close to the $110 mark as concerns over Middle East supply routes continued to weigh on global crude prices.
Middle East Disruptions Drive Up Costs
The root of the pressure lies in the escalating US-Iran conflict, which has triggered a series of supply disruptions across the Middle East. Saudi Arabia's East-West Pipeline, which has the capacity to move about 4 million barrels of crude oil per day, was shut down following attacks. Petroleumprice.ng reports that Houthi forces have also continued strikes around the Red Sea and the Bab el-Mandeb strait, two critical corridors for moving crude oil and refined products between the Middle East and international markets.
Any prolonged closure of these routes pushes up freight and insurance costs, which feed directly into the landing cost faced by import-reliant markets like Nigeria.
Dangote Refinery's Production Capacity
Earlier, Legit.ng reported that Dangote Petroleum Refinery has said its production capacity is sufficient to cover a significant share of Nigeria's domestic fuel requirements. The refinery can produce about 75 million litres of petrol daily, compared with estimated national consumption of roughly 50 million litres. Its daily diesel output capacity stands at about 25 million litres, against estimated demand of 14 million litres.
The facility also has the capacity to produce around 20 million litres of aviation fuel each day, significantly above current domestic consumption. The rising landing cost and the gap with local refinery prices underscore the ongoing pressure on Nigeria's downstream oil market as importers navigate global supply disruptions and domestic pricing dynamics.
