Fuel Landing Cost Drops to N829/litre

The average cost of importing petrol into Nigeria has dropped to N829.77 per litre, a price now lower than the rate of locally refined fuel.

Data from the Major Energies Marketers Association of Nigeria showed that as of October 30, 2025, the landing cost of imported petrol had fallen from N849.61 recorded in mid-October. Despite this drop, the Dangote Refinery’s ex-depot price stood at N877 per litre.

The price difference between imported and locally refined petrol led to the recent approval of a 15 percent import tariff on petrol and diesel by President Bola Tinubu. The policy, announced on Friday through his media aide, Sunday Dare, aims to promote local refining and strengthen Nigeria’s energy independence.

The new tariff is expected to make imported fuel less attractive, giving domestic refiners such as the Dangote Refinery, Port Harcourt Refinery, and other modular plants an advantage. The measure will take effect after a 30-day transition period ending November 21, 2025.

Government officials said the decision was made to reduce Nigeria’s long-term dependence on imported fuel, conserve foreign exchange, and support local industries that create jobs. For years, Nigeria has exported crude oil only to import refined products, a cycle that drained national resources and discouraged investment in local refining.

Meanwhile, fuel prices across Lagos and Ogun States averaged around N920 per litre over the weekend. At different depots, prices ranged between N871 and N890 per litre, depending on the marketer.

In response to the new tariff, the Petroleum Products Retail Outlets Owners Association of Nigeria warned that if poorly implemented, the policy could cause fuel scarcity. The group advised the government to ensure a level playing field for all operators and prevent monopoly in the downstream sector.

It also urged the Nigerian National Petroleum Company Limited (NNPCL) to make crude oil available to local refineries, stressing that adequate supply would be crucial to the success of the policy.

Following improvements in domestic production, the NNPCL has reduced its pump price by N10, now selling petrol for about N945 per litre across most of its filling stations, though variations remain across locations.

The Dangote Refinery assured consumers that it would maintain steady fuel supply, especially during the festive season, to prevent shortages.

Meanwhile, Oando Plc announced that it had suspended petrol importation, citing the growing impact of local refining on the market. The company reported a 20 percent drop in trading revenue during the first nine months of 2025, attributing the decline to the success of domestic refining operations led by the Dangote Refinery.

Oando said it is now focusing on crude oil trading, gas, and metals to offset reduced petrol import volumes. Despite lower revenues, the firm’s profit after tax rose by 164 percent to N210 billion, driven by stronger production and recoveries.

The Dangote Refinery, which began operations in 2024 with a capacity of 650,000 barrels per day, now supplies most of Nigeria’s petrol and diesel needs, reducing the country’s reliance on imported fuel and reshaping its downstream market.