Fuel Landing Cost Declines, Now Cheaper Than Dangote Refinery’s Petrol Price

A significant development has reshaped the competitive environment within Nigeria’s downstream oil sector, revealing that the cost to import petrol has unexpectedly dropped below the selling price of domestically refined fuel from the Dangote Refinery. This turn of events signals a potential price war that could ultimately benefit consumers nationwide, should marketers opt for the cheaper foreign supply.

Dependable NG reports that the latest energy prices bulletin from the Major Energy Marketers Association of Nigeria (MEMAN) confirms the landing cost of imported petrol fell to N839.97 per litre as of October 21, 2025. This figure is clearly lower than the N877 per litre being charged by the Dangote Refinery. This new price represents a marginal decrease from the N841.54 recorded just the day before, on October 20.

The Independent Petroleum Marketers Association (IPMAN) has welcomed this shift. Speaking on the development, IPMAN spokesperson Chinedu Ukadike confirmed that the price disparity is a healthy consequence of a liberalised and deregulated sector, where market forces are driving price competitiveness. This situation provides marketers with a crucial choice, intensifying market tension and raising hopes for lower retail prices.

“It is due to the liberalisation of the sector, which has set the tune for a price war. Marketers now have the option to buy either at N877 per litre with Dangote Refinery or N839 with MEMAN,” Ukadike stated. He stressed that marketers are incentivised to choose the cheaper imported fuel to pass on savings and maintain affordability for Nigerian consumers, a move that could lead to a widespread reduction in petrol prices.

Further market analysis showed that ex-depot prices from several major marketers, including Emedab, Gulf Treasure, Ardova, and Bono, were already positioned at N875 per litre—still below the Dangote Refinery’s price of N877. This competitive pricing pressure suggests a scramble for market share.

Despite the favorable drop in imported fuel costs, the effect is yet to fully be felt at the pump. Checks in the Federal Capital Territory revealed that retail outlets belonging to major players such as NNPC, MRS, Ranoil, Total, and Emedab were still selling petrol to motorists at rates between N950 and N965 per litre at the time of this report. This delay suggests that other factors, including logistics and operational overheads, continue to influence the final retail price, even as wholesale costs begin to fall.