Cheap Fuel Imports Lure Oil Traders from Dangote Petroleum Refinery, Choke Apapa-Kirikiri
The arrival of cheaper imported petroleum products has triggered a major shift in Nigeria’s downstream oil market, with many marketers abandoning the Dangote Petroleum Refinery in favour of imported fuel, a development that is worsening tanker traffic and gridlock along the Apapa-Kirikiri corridor in Lagos.
Findings by Vanguard showed that many owners of oil depots have embarked on massive importation of Premium Motor Spirit (PMS), popularly known as petrol, and Automotive Gas Oil (AGO), or diesel, for the third quarter (July–September) 2026 after obtaining import licences from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Before the latest wave of imports, many marketers relied heavily on the Dangote Petroleum Refinery for product supplies and distribution across Nigeria.
Industry sources said the renewed importation became possible following the issuance of import licences to Matrix Energy, AA Rano, AYM Shafa, Bono Energy, Nipco Plc and Pinnacle Oil & Gas.
According to the NMDPRA, the approvals are intended to ensure market stability and prevent possible supply disruptions amid declining stock levels and reduced gasoline output from Nigeria’s largest refinery.
It was gathered that AA Rano, AYM Shafa, Bono Energy, Matrix Energy, Nipco Plc and Pinnacle Oil & Gas were authorised to import petrol, while AA Rano, AYM Shafa, Bono Energy, Matrix Energy and Pinnacle Oil & Gas also received approval to import diesel.
Under the allocation, AA Rano and Matrix Energy each received approval to import 180,000 metric tonnes of petrol, while Pinnacle Oil & Gas was allocated 150,000 metric tonnes and AYM Shafa 120,000 metric tonnes.
For diesel, AYM Shafa received approval to import 60,000 metric tonnes, while Pinnacle Oil & Gas was cleared to import 45,000 metric tonnes.
Industry operators said the influx of imported products has shifted lifting activities from the Dangote Petroleum Refinery to tank farms located in Apapa and Kirikiri, resulting in a sharp increase in the number of petroleum tankers converging on the area daily.
The development, they said, has compounded traffic congestion on major roads leading to the nation’s busiest petroleum distribution hub.
A tanker owner, who spoke on condition of anonymity, said marketers were being driven primarily by price.
“As I speak, imported petroleum products have become cheaper than locally refined products. That is the major reason marketers have shifted their patronage to fuel importers.
“We will continue to buy imported fuel because of the cost advantage. We save between N2 and N3 per litre by purchasing imported petroleum products. When you buy in commercial quantities, the savings run into millions, and in some cases, billions of naira.”
Another depot operator said the market has become increasingly price-sensitive since deregulation.
He said: “Nobody is loyal to any refinery. Marketers will always buy from whoever offers the lowest price. At the moment, imported products are more competitive, so naturally many traders have moved away from Dangote.”
