Pump Price Twist: Marketers Reveal Imported Fuel Beats Dangote On Cost

Petroleum products marketers have signaled a possible nationwide reduction in petrol prices in the coming days, following a change in the cost balance between imported fuel and the gantry price of petrol produced by the Dangote Refinery.....KINDLY READ THE FULL STORY HERE▶

The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, disclosed this on Monday in an interview with Daily Post, noting that prevailing market conditions could soon bring relief to motorists at filling stations.

Figures from the Major Energies Marketers Association of Nigeria (MEMAN) indicate that imported petrol is currently about ₦77 per litre cheaper than the Dangote Refinery’s gantry price of ₦799 per litre. This shift has boosted optimism among industry stakeholders and consumers that pump prices may soon ease.

Meanwhile, the Dangote Refinery last week urged marketers to avoid coastal petrol imports, arguing that such products cost roughly ₦75 more per litre than its own supply.

Despite the change in pricing dynamics, petrol prices remain high in many parts of the country. In Abuja, pump prices range between ₦839 and ₦905 per litre, while some filling stations in Lagos have begun selling as low as ₦817 per litre—below the ₦839 price at Dangote-backed MRS outlets.

Commenting on the situation, Maigandi said the current market realities and favorable conditions could lead to a downward review of petrol prices nationwide. He revealed that about 80 percent of IPMAN members currently source their fuel directly from the Dangote Refinery.

“Almost 80 percent of my marketers are buying directly from Dangote because, for now, we effectively have only one functioning refinery in the country,” he said.

Maigandi explained that price differences often arise from logistics and the volume of fuel purchased. According to him, buyers purchasing more than two million litres receive a ₦20 per litre discount, while those buying five million litres or more enjoy a ₦25 per litre discount, even though the official gantry price remains ₦799 per litre.

He added that increased competition—through imports or the entry of more refineries—would eventually drive prices lower. “Fuel prices are likely to come down again,” he stated.

Currently, petrol sells for about ₦820 to ₦825 per litre in Lagos and ₦870 to ₦875 per litre in Abuja, a difference Maigandi attributed largely to transportation costs and supply logistics.

The prospect of price moderation follows Dangote Refinery’s decision in January to raise its gantry price from ₦699 to ₦799 per litre, a move that triggered widespread increases in pump prices nationwide.

In December, the refinery’s chairman, Aliko Dangote, had promised to reduce petrol prices to ₦739 per litre, a target that was not achieved at most filling stations.

As of Monday evening, global oil prices stood at $64.36 per barrel for West Texas Intermediate and $69.15 per barrel for Brent Crude—key indicators that continue to influence domestic fuel pricing.