A major supply agreement between the Dangote Petroleum Refinery and 20 top petroleum marketers has collapsed, triggering a massive surge in petrol imports across Nigeria. The deal, which was structured for marketers to offtake 600 million litres of petrol monthly, reportedly hit a brick wall over deep-seated pricing disagreements.
According to exclusive industry data, the breakdown led to a sharp spike in petrol importation during November 2025, with total imports rising to 1.563 billion litres. Sources within the sector revealed that the agreement, which lasted barely a month, failed because the refinery was reluctant to adjust its prices in line with falling international benchmarks. While importers saw the global landing cost of petrol drop to approximately N829 per litre, the refinery initially maintained a gantry price of N828 per litre, which marketers argued was not competitive.
The collapse of the partnership has reopened the doors for independent and major marketers to source products from the international market, leading to what analysts describe as a “full-blown price war.” In a bid to regain market dominance and counter the influx of imported vessels, the Dangote Refinery eventually slashed its gantry price from N828 to N699 per litre—a 129 per cent reduction and the steepest drop recorded in 2025.
While the refinery maintains that domestic refining is the only way to stabilize the naira and ensure energy security, marketers contend that the market must remain open to competition to prevent a monopoly. As the price war intensifies, consumers are beginning to see lower prices at the pumps, though industry experts warn that the ongoing friction between local refiners and importers could lead to future supply volatility if a sustainable pricing framework is not established
