The landing cost of imported Premium Motor Spirit (petrol) is now lower than the gantry price of the commodity from the Dangote Petroleum Refinery, following the refinery’s decision to hike prices.

Data from the Major Energies Marketers Association of Nigeria show that the landing cost of imported petrol was N728.88 per litre as of last week.

However, on Monday night, the Dangote refinery announced an increase in its gantry price of petrol from N699 to N799 per litre. The new price increase means that Dangote’s gantry price is about N70 higher than the landing cost of imported PMS.

As a result of the new price rise, the refinery said MRS filling stations would now sell petrol at N839 per litre. Checks by our correspondent on Tuesday confirmed that MRS filling stations had raised their prices from N739 on Monday to N839, following the announcement by the 650,000 barrels-per-day Lekki refinery.

In a statement Monday night, the refinery said it realigned petrol prices modestly because the festive period was over. The company explained that the reduction was at a sustainable level, to support long-term market stability and affordability.

The refinery reaffirmed its commitment to market stability and an uninterrupted nationwide supply of petrol.

It recalled that during the recent festive period, it implemented a deliberate and temporary price support intervention to cushion Nigerians at a time of heightened household spending.

According to the statement, this marked the second consecutive festive season in which the refinery absorbed high costs in the national interest, including logistics support in 2024 and a price reduction in 2025 to promote affordability and market calm.

“Despite the price reduction, many filling stations failed to reflect the new price at the pump, thereby denying Nigerians the benefits of the reduction. With the festive period concluded, PMS prices have been modestly realigned to sustainable levels to support long-term market stability and affordability. Under the current alignment, the PMS gantry price is N799 per litre, while MRS retail outlets are selling at N839 per litre,” the statement declared.

The Chief Executive Officer of the Dangote refinery, David Bird, stated that the refinery continues to supply the domestic market with approximately 50 million litres of PMS daily, with nationwide evacuation and distribution operating normally.

He noted that the refinery’s design flexibility allows it to process a wide range of crude and intermediate feedstocks, enabling continued PMS supply during planned maintenance activities. According to him, this capability ensures that the domestic supply remains stable and uninterrupted.

“As a domestic producer, Dangote Petroleum Refinery continues to shield the Nigerian market from import-related volatility and external supply disruptions, while remaining a stabilising force in the downstream petroleum sector. Dangote Petroleum Refinery remains focused on delivering energy security, price stability, and long-term value for Nigerians,” the statement concluded.

Before the price adjustment on Monday, The PUNCH reports, the landing cost of imported petrol had remained stuck at rates above the Dangote refinery’s ex-depot price of N699 per litre. As a result, many importers found it difficult to sell petrol at competitive prices compared with the Dangote-backed MRS filling stations.

When the President of the Dangote Group, Aliko Dangote, slashed the petrol gantry price by N129 in December, he said the move was to ensure Nigerians bought petrol at prices not above N740 during the Yuletide. He added that it was also intended to discourage importation.

Dangote accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of issuing “reckless” import licences in November while his tanks were full. As marketers said they were losing money due to the price crash, Dangote replied that he was also losing more.

It was reported by NMDPRA that the quantity of imported petrol dropped from 52.1 million litres per day in November to 42.2 million litres per day in December. On the other hand, Dangote’s supply rose from 19.5 million litres per day to 32 million litres per day in the same period.

Sources within the Dangote Group told our correspondent that the reduction done in December was mainly for the Yuletide, saying the announcement on Monday was only to return petrol prices to where they should be.

“We didn’t increase prices; we only realigned the petrol price to what it should be. When we reduced the price in December, we told Nigerians that it was mainly for the festive season. Now that the festive season is over, it is normal that we adjust the price to reflect market realities,” one of the sources said.

However, the National President of the Petroleum Products Retail Outlet Owners Association of Nigeria, Billy Gillis-Harry, said the President of the Dangote Group, Aliko Dangote, reduced the price of PMS to take over the market from other competitors.

According to him, Nigerians would soon understand what the billionaire could do with petroleum products the moment he became the sole supplier. Gillis-Harry appealed that all stakeholders in the sector should be given a level playing ground to operate.

Recall that Dangote had repeatedly debunked claims of monopoly, saying he had never stopped anyone from building refineries. But he held that importing petrol when his tanks were full amounted to economic sabotage.

It is yet to be seen whether importers will sell petrol at prices lower than that of Dangote.