Reported By Mary Udezue | Edited by: Gabriel Osa
Industry analysts and petroleum sector observers are raising fresh concerns that imported petrol supplies are contributing to widening price disparities in Nigeria’s premium motor spirit (PMS) market — particularly among products sold at MRS Oil Nigeria Plc stations and those offered by independent marketers. The trend has implications for fuel market competition, pricing uniformity and consumer costs amid a broader transition in the downstream petroleum sector.
According to analysts cited in industry reports, fuel imports continue to play a dominant role in meeting domestic petrol demand despite rising output from local refineries. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority show that while domestic refining has increased, imported petrol accounted for more than half of daily supply during much of 2025, reflecting persistent reliance on foreign supplies. This dynamic has contributed to price divergence as different market segments adjust to varying cost structures and competitive pressures.
One of the clearest markers of the widening disparity is the price gap between petrol sold through MRS stations, many of which now carry petrol produced locally by the Dangote Petroleum Refinery at fixed rates, and fuel sold by other marketers sourcing from import channels. MRS stations, supported by Dangote’s national distribution network, have been selling petrol at significantly lower pump prices — around ₦739 per litre — reflecting aggressive pricing strategies by the refinery to stabilise the downstream market and pass on cost benefits to consumers.
In contrast, other marketers who continue to rely on imported petrol and cover higher landing costs have maintained prices that are often substantially higher. Recent industry checks show retail rates for imported PMS still ranging between ₦800 and above per litre in many depots and filling stations outside the Dangote‑linked network — a gap which analysts say reflects both import costs and logistical inefficiencies relative to locally refined supply.
Experts argue that this divergence underscores structural challenges in Nigeria’s post‑subsidy fuel market. Despite deregulation, the country’s fuel import dependence remains significant, with data indicating that Nigeria imported billions of litres of petrol between mid‑2024 and late 2025 even as local refinery output increased. Analysts say the resulting competition between imported PMS and locally supplied product is exposing pricing imbalances that require careful regulatory oversight.
Petroleum industry consultants note that the disparities are most visible in consumer pricing patterns. Stations aligned with domestic refinery supply chains — particularly those tied to large‑scale operators like Dangote — are under intense competitive pressure to price petrol more attractively, leading to discounted pump rates that attract longer queues at selected outlets. Meanwhile, independent marketers and depots sourcing imported fuel contend with higher landed costs, including foreign exchange and logistics charges, which they reflect in higher retail prices.
Analysts warn that without harmonised supply strategies and expanded refining capacity, such disparities could persist, potentially creating market segmentation where consumers gravitate toward lower‑priced outlets while others remain constrained by traditional supply channels. They also flag that continued import dependence exposes the market to global crude price volatility and foreign exchange fluctuations, which are likely to be passed on to consumers unless domestic refining and distribution scale up further.
Calls are growing among stakeholders for regulatory bodies to enhance transparency around pricing and cost structures, and to encourage broader adoption of competitive pricing mechanisms that reflect the changing balance between imported and locally refined petrol. Some industry voices suggest that upcoming policies — including proposed tariffs on imported PMS and support for increased local refining integration — could help narrow disparities and create a more equitable pricing environment for Nigerians.
As the downstream petroleum sector continues to evolve, the interplay between import‑sourced petrol and rising domestic refining capacity is likely to remain a key factor shaping petrol prices, distribution patterns and market competitiveness throughout 2026 and beyond.
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