Dangote vs Importers: Why Petrol Is Still Above ₦1,000

Petrol prices in Nigeria may remain above ₦1,000 per litre for now, despite the recent fall in global crude oil prices.

Crude oil prices have dropped to around $70 per barrel as supply concerns ease around the Strait of Hormuz.

Many Nigerians expected the fall to push petrol prices down quickly.

But that has not happened.

Pump prices remain high, while refiners and importers appear cautious about who should make the first major price cut.

Dangote Says Importers Should Cut Prices First

Dangote Refinery has become Nigeria’s main fuel price setter since late 2024.

Before then, the Nigerian National Petroleum Company Limited largely played that role because Nigeria had no major functioning local refinery.

But with Dangote now supplying petrol, diesel and aviation fuel, attention has shifted to the refinery whenever fuel prices move.

A senior Dangote Group official said the Federal Government should ask fuel importers to reduce their prices instead of putting pressure on the refinery.

The official argued that importers have received large import licences and are bringing in cheaper Russian fuel products.

According to the official, if those imports are cheaper, the importers should be able to sell at lower prices.

Dangote Says Old Crude Is Affecting Prices

Dangote Refinery also says it still has crude oil bought at higher prices.

This means the refinery may not be able to reduce petrol prices sharply until it processes and clears older crude stock.

The official said the refinery has large crude storage capacity, crude in transit and forward crude purchase agreements that have not yet arrived.

This matters because refineries do not always reflect global crude price changes immediately.

If a refinery bought crude when prices were high, it may still need to recover that cost before selling refined products at lower prices.

Importers Are Also Waiting

Fuel importers are also being cautious.

The Independent Petroleum Marketers Association of Nigeria said importers are watching Dangote’s next move before taking big pricing risks.

Its National Publicity Secretary, Chinedu Ukadike, described the situation as a “ding-dong game.”

According to him, importers are afraid that if they bring in large volumes of fuel and Dangote suddenly cuts prices, they could suffer major losses.

This has created a standoff.

Dangote says importers should reduce prices because they are bringing in cheaper fuel.

Importers say they must watch Dangote because the refinery has enough market power to change prices quickly.

Landed Cost Shows The Price Gap

Data from the Major Energies Marketers Association of Nigeria showed that the landed cost of imported petrol stood at about ₦1,023 per litre.

Dangote’s gantry price stood at ₦1,075 per litre before its latest ₦50 reduction.

This means imported petrol appears cheaper on paper.

But the lower landed cost has not fully translated into cheaper pump prices.

That gap has increased public frustration, especially as Nigerians continue to pay more than ₦1,000 per litre in many locations.

Depot Prices Move Slightly

Depot prices have shown only modest changes.

In Lagos, some depots reduced petrol prices by about ₦3 to ₦4 per litre.

African Terminal, Bono, Emadeb, Integrated and Sahara reportedly moved to ₦1,117 per litre from ₦1,120.

Aiteo reduced its price to ₦1,115, while Techno Oil cut its price to ₦1,117.

Other depots kept their prices almost unchanged.

Dangote Refinery, MRS, NIPCO and Pinnacle retained their previous prices before Dangote later announced another ₦50 cut in its gantry price.

The reductions show movement, but not enough to create major relief at filling stations.

Government Says Fuel Sellers Must Be Fair

The Federal Government has expressed concern over the slow pace of petrol price reductions.

The Minister of State for Petroleum Resources, Heineken Lokpobiri, warned that the government would not tolerate profiteering or consumer exploitation.

He said deregulation does not mean regulators should ignore unfair practices.

The Federal Competition and Consumer Protection Commission also raised concerns about possible consumer exploitation in the downstream petroleum sector.

However, fuel marketers have pushed back against any move that looks like price control.

IPMAN warned that filling stations may shut down if the government tries to force prices in a deregulated market.

Why Nigerians Are Still Waiting

The issue now is not only crude oil price.

It is also timing, market power, old stock, import risk, depot costs and deregulation.

Dangote does not want to carry the burden of cutting prices alone.

Importers do not want to get trapped by sudden refinery price cuts.

Marketers do not want government price controls.

Consumers, however, want lower prices because crude oil has fallen sharply.

This is why petrol remains expensive despite better conditions in the global oil market.

Expert View

Nigeria’s fuel market is now in a difficult transition.

The country has moved away from fixed government pricing, but the market is still not fully competitive.

Dangote Refinery has become a major price setter, while importers still influence supply through imported products.

This creates a pricing contest where each side watches the other before making bold moves.

In a mature deregulated market, lower crude prices should gradually reflect in pump prices. But in Nigeria, the process is slower because of stock purchased at higher prices, foreign exchange costs, logistics, margins and uncertainty.

The government must avoid returning to price control. But it must also ensure transparency.

Consumers need clear information on landed cost, gantry prices, depot prices and retail margins.

Without that transparency, the public will continue to suspect profiteering.

Frequently Asked Questions

Petrol remains above ₦1,000 because refiners, importers and marketers are cautious about cutting prices sharply despite lower crude oil prices.

Why has Dangote not reduced prices more sharply?

Dangote Refinery says it still has crude bought at higher prices, including stock in storage, cargoes in transit and forward purchases.

Are imported fuel products cheaper?

Data from marketers showed imported petrol had a lower landed cost than Dangote’s gantry price, but that has not fully reflected at filling stations.

Why are importers not cutting prices faster?

Importers are cautious because Dangote may reduce prices suddenly, which could make imported stock unprofitable.

Can the government force petrol prices down?

The market is deregulated, so the government no longer fixes prices. However, regulators can act against unfair practices and consumer exploitation.