By Obah Sylva
The Dangote Petroleum Refinery has stopped selling petrol to fuel importers, according to refinery officials, as rising pump prices continue to put pressure on Nigeria’s downstream petroleum market, with average petrol and diesel prices reportedly increasing by more than 86 percent in 2026.
Key Highlights
- Dangote Refinery stops selling petrol to fuel importers, according to refinery officials.
- The refinery says it is restricting sales to marketers that do not import petrol.
- Dangote officials raised concerns over the blending of locally refined fuel with imported products.
- Six major marketers were previously identified as holding licences to import petrol.
- The affected companies were licensed to import a combined 720,000 metric tonnes of petrol.
- A fuel-price report put the average increase in petrol and diesel prices at 86.3 percent by September 22, 2026.
- Petrol averaged ₦1,378 per litre, while diesel reached ₦1,899 per litre in the report.
- Some fuel marketers have gone to court over the continued issuance of petrol import licences.
- The latest development could further reshape competition between domestic refining and fuel imports in Nigeria.
Dangote Refinery Stops Selling Petrol to Fuel Importers
The decision by the Dangote Petroleum Refinery to stop supplying petrol to companies that continue to import fuel follows an earlier warning from the refinery that it could cut off major marketers involved in petrol imports.
An official of the refinery, who spoke anonymously, said the company was no longer selling petrol to importers because of concerns that its locally refined products could be blended with imported fuel of different quality.
“We are not selling petrol to those who are importing, since they are trying to blend our high-quality products with their ultra-low-quality imported products,” the official said.
A second source said the refinery was currently supplying members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other marketers not known to be importing petrol.
Dangote Had Earlier Threatened to Cut Off Importing Marketers
The latest decision follows a warning issued by the refinery in late August that it was considering stopping supplies to major marketers that continued to import petrol.
By early September, six companies had been identified as holding import licences issued by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The companies named were Matrix Energy, A.A. Rano, AYM Shafa, NIPCO, Pinnacle Oil and Gas, and Bono Energy.
The companies were reportedly licensed in May to import a combined 720,000 metric tonnes of petrol.
Dangote Raises Concerns Over Imported Petrol
The refinery has argued that continued petrol imports could affect the market for locally refined products.
According to the refinery, imported petrol accounted for about 43 percent of supply in July, leaving the plant with surplus products that it could not sell domestically and had to export.
Dangote has also raised concerns about the blending of its Euro-5 refined petrol with imported grades, arguing that the resulting products could become difficult to distinguish in the market.
The refinery’s position has intensified the debate over whether Nigeria’s growing domestic refining capacity should be prioritised over imported petroleum products.
Fuel Importers Challenge Import Licence Policy
The dispute has also moved into the courts, with some fuel marketers seeking legal orders requiring the petroleum regulator to continue issuing import licences.
The marketers argue that they could be left with significant commercial exposure if they are prevented from importing fuel while the Dangote Refinery also refuses to supply them.
The legal challenge comes amid an evolving downstream market in which domestic refining, import licences and petrol pricing remain closely linked.
Petrol and Diesel Prices Rise 86% in 2026
The dispute over fuel imports comes as Nigerian motorists and businesses continue to face significantly higher petroleum prices.
A fuel-price trend report by Price and Promo, cited by Punch, indicated that average petrol and diesel prices had increased by 86.3 percent by September 22, 2026.
According to the report, petrol was selling at an average of ₦1,378 per litre, representing an 80.8 percent increase from the January 13 base price.
Diesel, meanwhile, averaged ₦1,899 per litre, representing a 91.8 percent increase over the same period.
The report said fuel prices rose sharply in March, remained at elevated levels between April and July, and increased again in August and September.
Petrol Prices Reach ₦1,500 in Some Parts of Nigeria
The increase in domestic fuel prices has been reflected across several parts of the country.
Reuters reported in September that petrol prices had reached approximately ₦1,400 per litre in Lagos and Abuja, while prices in some northern locations rose as high as ₦1,500 per litre.
The development followed an increase in the Dangote Refinery’s gantry price to around ₦1,350 per litre.
Diesel prices also rose above ₦2,000 per litre in some locations, increasing operating costs for businesses and transport operators that rely heavily on diesel-powered generators and vehicles.
Petrol Consumption Falls as Prices Rise
Official industry data also indicate that petrol consumption has declined as prices have increased.
About 11.7 billion litres of petrol were reportedly consumed between January and August 2026, while August offtake was approximately 31 percent lower than January’s level.
The decline suggests that higher pump prices are affecting fuel demand, with motorists and businesses adjusting their consumption amid the rising cost of transportation and energy.
Domestic Refining Yet to Fully Shield Consumers From Price Increases
The latest developments highlight the complexity of Nigeria’s downstream petroleum market despite the emergence of large-scale domestic refining capacity.
While the Dangote Refinery has significantly increased local refining capacity, domestic pump prices remain influenced by crude oil prices, global petroleum markets, logistics, exchange-rate pressures and competition between locally refined and imported products.
The refinery’s decision to withhold petrol supplies from companies that continue to import could further reshape the relationship between domestic refiners and fuel marketers.
At the same time, continued restrictions or uncertainty around petrol imports could affect the number of suppliers available to the market.
The developments are therefore likely to keep the debate over fuel imports, domestic refining and petrol prices in Nigeria at the centre of the country’s downstream petroleum sector.
Related Stories:
