Nigerian domestic fuel triumphs over imports thanks to the Dangote refinery
Locally produced fuel outperformed imported fuel.
Written by Amna Hassan
Nigeria’s fuel market, in Africa’s most populous country, is undergoing a remarkable transformation as locally produced gasoline outperforms its imported counterpart in terms of price, a move that strengthens the position of the Dangote refinery and pushes towards reducing dependence on imports.
Locally produced fuel outperformed imported fuel.
The latest data from the Major Energy Marketers Association of Nigeria (MEMAN) shows that the price of imported gasoline reached approximately 1,223.32 naira per liter, exceeding the price of fuel produced at the Dangote refinery, which is 1,215 naira per liter. This difference reflects an important shift in the Nigerian energy market, where obtaining local fuel has become cheaper than importing it.
The Dangote refinery, located in the Lekki region, has a production capacity of about 650,000 barrels per day, making it one of the largest refineries in the world and giving it the ability to meet a large part of the local demand.
Rising oil prices and currency depreciation are increasing import costs.
The rise in imported fuel prices is due to the rise in global crude oil prices, along with the decline in the value of the Nigerian currency against the dollar. According to the periodic bulletin of ”Miman”, the average price of Brent crude reached about $90 per barrel, while the average exchange rate of the naira recorded about 1,367 naira against the dollar, which led to an increase in the cost of importing refined petroleum products.
Calls to halt imports and support local production
In light of these developments, the Independent Petroleum Marketers Association of Nigeria (IPMAN) renewed its demand for the government to halt gasoline imports, asserting that domestic refining capacity is now sufficient to meet market needs.
The association believes that continued imports put pressure on foreign exchange reserves and limit the ability of local refineries to compete, especially with the high prices of imported fuel compared to local production.
Increases include diesel and jet fuel
The increases were not limited to gasoline, as the price of imported diesel rose to about 1,739.96 naira per liter, while jet fuel reached 1,616.43 naira per liter, reflecting the continued pressure on the country's energy market.
These indicators confirm that Nigeria is entering a new phase in which the fuel market is increasingly dependent on domestic production, with rising demands to enhance self-sufficiency and reduce reliance on imports, thereby supporting the national economy and easing pressure on foreign exchange reserves.
