Fuel Market Shake-Up: Dangote, Local Refiners Win Big As FG Halts Petrol Import Permits ⛽🔥

The move follows the law’s requirement that petrol imports should only be permitted when local production cannot meet the country’s demand.

According to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority, no petrol import licences were issued in February.

Similarly, the Crude Oil Refineries Association of Nigeria confirmed that no permits have been granted so far in March.

The association disclosed this in comments to Reuters, suggesting what analysts view as a deliberate policy shift by the government toward prioritising domestic refining capacity.

The decision is expected to benefit local refineries, particularly the Dangote Refinery, along with other emerging refining projects across the country.

Last year, the Dangote Refinery and other domestic refiners filed a lawsuit against the regulator and the Nigerian National Petroleum Company Limited, seeking to halt petrol imports which they argued were undermining investments in local refining.

Under the Petroleum Industry Act, the industry regulator can only issue petrol import permits when domestic production is unable to meet Nigeria’s consumption needs.

Previously, some stakeholders had argued that allowing imports was necessary to maintain competition in the downstream sector and prevent monopolies from emerging.

However, the latest development signals a stronger push by authorities to support local production.

Meanwhile, petrol pump prices have jumped by more than 54 percent following recent military strikes by the United States and Israel on Iran, a situation that has unsettled global oil markets.

The spokesperson of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, George Ene‑Ita, linked the sharp increase in fuel prices to the escalating tensions in the Middle East.

Industry statistics also indicate a drop in petrol consumption in Nigeria. Average daily usage declined to 56.9 million litres per day in February 2026, compared to 60.2 million litres per day in January.

Within the same period, the Dangote Refinery supplied about 36.5 million litres of petrol and eight million litres of diesel to the domestic market.

According to the regulator, these supply volumes were sufficient to support local demand, which influenced the decision to withhold import licences.

Reacting to the development, the spokesperson of the Crude Oil Refineries Association of Nigeria, Eche Idoko, described the policy as a positive step for the domestic refining sector.

The association has consistently urged the government to stop issuing petrol import permits, arguing that continued imports reduce the profitability of local refineries.

“For us, anything that protects local production is a good move. The challenge now is to sustain the momentum,” Idoko said.