Oil marketers have alleged that major fuel importers, including AA Rano and Matrix, are selling imported Premium Motor Spirit (PMS) at around ₦1,350 per litre, a price they argue is significantly higher than the rates offered by Dangote Petroleum Refinery.
The allegation was confirmed by the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, who said the Federal Government’s decision to issue import licences to major marketers has not achieved its objective of increasing competition and moderating domestic petrol prices.
The comments come as marketers reportedly slow large-scale fuel purchases while awaiting greater clarity on Dangote Refinery’s revised pricing template and the landing cost of newly imported petrol cargoes.
What the data is saying
The allegations suggest that increased fuel imports have not yet translated into stronger price competition in Nigeria’s downstream petroleum market.
According to IPMAN, imported petrol is being sold at approximately ₦1,350 per litre, well above the ex-depot prices recently announced by Dangote Refinery following a series of price reductions.
If accurate, the wide pricing gap reduces the competitive pressure that import licences were expected to create and raises concerns about whether consumers are fully benefiting from increased market participation.
The claims also indicate that marketers are adopting a cautious approach to procurement, delaying major purchases until there is greater certainty over Dangote Refinery’s pricing direction and the economics of imported fuel.
More insights
The downstream petroleum market has undergone significant changes since the deregulation of petrol prices, with market forces now playing a larger role in determining pump prices.
Dangote Refinery has repeatedly reduced its ex-depot petrol prices in recent months, citing lower production costs and its intention to pass cost savings on to consumers.
However, imported petrol remains subject to several cost variables, including international refined product prices, freight charges, insurance, port handling costs, exchange rate movements, financing expenses, and distribution costs within Nigeria.
These factors can create price differences between locally refined and imported products, although marketers argue that the current gap appears unusually wide.
The latest allegations also highlight the uncertainty currently facing fuel marketers as they assess whether to source products locally from Dangote Refinery or continue importing under evolving market conditions.
What you should know
The Federal Government previously approved fuel import licences to encourage competition, improve product availability, and help moderate domestic petrol prices after market deregulation.
Key highlights include:
- IPMAN alleges that imported petrol is being priced at around ₦1,350 per litre by some major importers.
- The association argues that the import licence policy has not delivered the expected reduction in fuel prices.
- Marketers are reportedly slowing fuel purchases while awaiting clarity on Dangote Refinery’s latest pricing template and the cost of newly imported cargoes.
- The situation reflects the ongoing transition of Nigeria’s downstream petroleum market, where local refining capacity, import economics, and exchange rate dynamics continue to influence pricing.
While the allegations have intensified debate over competition in the downstream sector, they remain claims by industry participants. The evolving pricing strategies of both importers and domestic refiners will continue to play a key role in determining petrol prices and market dynamics in the months ahead.
