₦airaland Forum

RealLordZeus:
I always thought this type of news is a propaganda.

Can someone sensible explain to me why imported petrol will be cheaper than the locally refined.

1. Cost of doing business. It's expensive to make anything in Nigeria, because of the cost of doing business - the biggest cost is energy, as you have to rely on diesel-fueled generators instead of grid power. You may also have to spend a lot in bribes and kickbacks to government officials.
2. Quality. Dangote's very modern refinery produces better-quality fuels, better than most imported fuels. In fact, some of the imported fuels are very low-quality cheap stuff.
3. Greed. Most Nigerians try to "hammer" once they see an opportunity. They don't believe in making their money gradually, so they hike prices.

The World Bank and the NNCPL seem to be useless entities here in 2026. Let me correct that. Useless to the masses in Nigeria but beneficial to other established power structures.

Putindbutt:
https://punchng.com/oil-shock-wbank-predicts-3-1-point-inflation-rise-for-nigeria/

But they're all selling at the same price, so what's the difference?

nairalanda1:
What you are arguing for is that dangote should cut workers salaries, cut mainteance costs, and cut a lot of other things, so that you can have cheap fuel.

Life no be that way.

(Yep, I am not supporting this tinubu government too, before anyone starts. Just plain economics.)



Add the fact that the refineries that imported fuel comes from refine low quality fuel. That was the main source of our fuel before the dangote refinery came on stream.

Then dangote is operating under tinubu economy. Unless tinubu has started running the economy well, domestic producing costs go dey higher.

Saying imported fuel are low quality is not true. In a normal economic settings locally refined fuel should not be more expensive by 12% compared to imported fuel.


We rise by lifting others

AkhereOkaka:
Saying imported fuel are low quality is not true. In a normal economic settings locally refined fuel should not be more expensive by 12% compared to imported fuel.


We rise by lifting others

Imported fuel is lower quality. It's an open secret.

That's why it is cheaper.

And is tinubu running normal economic settings?

reddingtonblack:
Dem no need explain to blind man rain dey fall .. If imported fuel is cheaper why cant we see it at the stations

Prices at independent marketers like Mobil, Total and co. are not lesser than Dangote price ...is that Dangote fault again

Why are the importers not doing Dangote back like they claim he was hunting them with price war last year ....why are importers not setting competition

Did you read this part in the thread

Dangote refinery—the main supplier of refined petrol after the regulator ceased issuing import licences in early 2026

In one breath, you call for ban on importation in another breath you are asking why imported fuel is not cheaper

World Bank is anti Africa.
Nigerians should be thankful to Dangote especially this period.
Fuel for reach 5k per litre if you see am buy sef. Remember queues at filling stations? Nigerians for see shege.

World Bank has never done anything good for Africa

nairalanda1:
Imported fuel comes from very awful refineries that produce wayo wayo stuff. Dangote is producing at least close to premium, so prices of his crude would he higher than imported fuel

Also, oga dangote is operating in tinubu economy PLUS he is competing internationally. Salary costs would be high enough to puch overall costs.

If we agree to this, what about rice?

I think Dangote is supporting Iran by using hardship on Nigerians so that we all will blame the US and Israel for attacking Iran. If not I don’t see the rationale of increasing fuel price for crude mined in Nigeria and refined by him

Maybe FG sold crude oil to Dangote at a higher price during the same period, this could result to that, also what are the agencies control oil price and other related activities doing?

Just my Opinion

RealLordZeus:
I always thought this type of news is a propaganda.

Can someone sensible explain to me why imported petrol will be cheaper than the locally refined.

Kukutente23:
Did you read this part in the thread

Dangote refinery—the main supplier of refined petrol after the regulator ceased issuing import licences in early 2026

In one breath, you call for ban on importation in another breath you are asking why imported fuel is not cheaper

. Main supplier does not negate " other" supplier ... Na english naw Main does not mean their is other supplies
You cant argue Dangote is the sole supplier of PMS and that is the point

those others still importing please why there own price no cheap, mobile, total are independent marketrs why there price no less thats the point

Yampotatocarrot:
If we agree to this, what about rice?

Thai and brazillian rice is produced in large amounts, to the point that they can export the surplus.

Nigerian rice is produced by mainly small holder farmers...who on their own cannot meet one third of the rice needs of nigeria, and suffer from things like bad transport systems, high costs, and insecurity.

HacheNoire:
Like we don’t know what Nigerian importers go for!

Can we compare the octane value and quality of both?

These western hand tools just desperate to attack that refinery. It’s bad business for them!

At a time when African countries are now being dependent on the refinery, they spring up another propaganda about cost!

When last did you see Nigerians talking about quality?

AkhereOkaka:
N


My question is, why will imported fuel be cheaper than Dangote's fuel by 12%, it will never be well with the Federal government of Nigeria and CBN governor Godwin Emefiele who was giving Dangote subsidised forex. Somebody they should've allowed to go source for forex from black market during the construction of his refinery. Of what benefit is the refinery to ordinary Nigerians


We rise by lifting others.

Why are the filling stations selling the cheaper imported petrol?
Subsidized from where?

ignis:
When the president is ready to solve the legacy problems that have become prevalent in the petroleum industry, we will know.
How can imported fuel be cheaper than locally refined one? What an irony..

that's a big problem. The same thing happened with rice, how can imported rice be more cheap than locally produced rice?

The same thing goes for cement, imported cement are far cheaper than locally manufactured cement.

Why?

ignis:
When the president is ready to solve the legacy problems that have become prevalent in the petroleum industry, we will know.
How can imported fuel be cheaper than locally refined one? What an irony..

They know what they're doing. They're out to frustrate dangote but they will fail. Over 30 agencies are pilfering dangote's profit, being an indigenous refinery and that's deliberate. They also cut off the crude sale to dangote deliberately. There's no way petrol refined locally from an imported crude can compete with the imported one.

Dangote knows what to do by fighting this evil regime dirty. He also should challenge those agencies.

Topman0001:
An average Nigerian has a mind set that is profit oriented and not purpose oriented. Innoson motors are costlier than Toyota, Nigerian rice is more expensive than foreign well processed long grain rice, Dangote fuel cannot be exceptional. Is we import everything we use in Nigeria you'll be surprised that things will be cheaper just that it will affect the value of our Nira. The indigenous chicken and eggs we consume are already becoming unaffordable because they are local products. Until we change our mentality, nothing will be cheap

Inosson motors costlier Toyota on which planet?
Do even know the price of a brand new Toyota?

I think it's time we started talking about the quality of PMS imported to that of Dangote

We where in this country when very bad PMS were imported, cars damaged and so on... Where are we in that investigation?

Reference:
Though I have very little hope about BUA.
Me. I feel he and Dangote are two sides of a coin. There is very, very little competition in the markets they share.

However government should do everything to see that the BUA refinery comes on stream as quickly as possible. And create a different kind of truly competitive market place that will benefit the country.

Sit and watch the government increases taxes, excessive naira in circulation and quote imaginary competition theory to comfort yourself while suffering and smiling.

Dbegining:
I'll start with the same thing i ended with when i spoke to you the last time: I hooe you're a billionaire (at least in naira) .That will give meaning to your position on things.

You are talking about operating cost? D you know how much in pure profits the refinery is making?

The government stifled competitors from importing fuel just fr ONE MAN!

He went to court to ask to be the sole importer of fuel at one time.

The chairman of that oil regulatory company that was fired the other day was because he refused to do Dangote's bidding. Cause Dangote can't tell me that's the first government official he has seen that's corrupt. And then why didn't he also serve as a whistle blower for the rest?


Let the government FREELY open importation and let the free economy decide things. THAT'S FUNDAMENTAL ECONOMICS!

Stop supporting evil be it the government or private individuals!

Don't demand subsidy from the government, keep talking about fairytales free economy.

SenecaTheYonger:
That means na importers been Dey save this country. Buy local to grow the naira my toto

They save you with higher prices of substandard petrol at there filling with 0.5 litre for 1 litre

Hello.

I respect your views on this issue.

I will like to share mine as well. I am primarily concerned with the average Nigerian, the consumer, as I am one.

Here are my views:

1 - On 'low quality fuel', it is not every car that needs premium quality fuel. In many countries, there is a choice of the type/grade of petrol the consumer buys at the pump. So you can chose whether to buy the high premium grade or lower grade variant.

In my view, the regulator only has to ensure that the "grades of petrols" sold in Nigeria meets a minimum quality & standards. For the auto experts, I am sure a 40 year old Danfo doesn't need to use the same petrol grade as a 2025 Toyota or Mercedes SUV?

Everybody should not be forced to use "high grade premium quality" petrol where there are other reasonoble low priced options. Consumers should be given the option to chose the options that suits their pockets and engine needs.

2 - Energy security is very important as we have seen from the recent crisis in the middle-east. I think it's not wise to tie our fate to Dangote Refinery only for our petrol needs. Moreover, giving Dangote Refinery a captive market by not allowing other players import is not a wise move for the economy & consumer protection, in my view.

A mix of sources is better to ensure a robust, competitive and resilient energy supply value chain.

A big maintenance shut down (like some months back) or any other force majeure will leave us badly exposed and cause a major supply chain and economic disruption. Think of it as "Iran blocking the Strait of Hormuz."

3 - Since they have invested several Billions of dollars, I trust that Dangote Refinery will do what is best for their company by wanting to maximise profits. That is fine.

The average Nigerian consumer should also have their interests protected with the option of reasonable quality & cheap fuel. That will keep more money in the pocket of the average person to be able to spend on life's other demanding needs like food, clothing and shelter. All our spendingd shouldn't be eaten up by energy bills alone.

4 - To recoup its invest, I am sure Dangote Refinery can export products to other willing buyers - of which I believe there are many of such out there. It is not a must that they sell to Nigeria only.
He can even receive more FX from such sale because he maybe able to charge them more.

These are the main pillars of my view. If you were to summarise it though, it'll be centred on consumer protection and supply value chain resilience. It is a tough ask but that should be the primary thrust of government policy.

nairalanda1:
What you are arguing for is that dangote should cut workers salaries, cut mainteance costs, and cut a lot of other things, so that you can have cheap fuel.

Life no be that way.

(Yep, I am not supporting this tinubu government too, before anyone starts. Just plain economics.)

Add the fact that the refineries that imported fuel comes from refine low quality fuel. That was the main source of our fuel before the dangote refinery came on stream.

Then dangote is operating under tinubu economy. Unless tinubu has started running the economy well, domestic producing costs go dey higher.

It is regulatory capture that DR wants. I believe the FG will cave in because of elections & related shenanigans.

The refinery is a business and not a charity. So I'm always baffled when folks praise them whenever their narrative is that they "reduce their prices due to love for the common man."

Whereas in plain and simple language, they're only responding to market dynamics ní FGS!
How our people do not see I can't understand sha.

A free market will help alleviate/eliminate many of the problems & disruptions in our economy today. Many of the structural constraints which have caused the extended levels of high inflation has been caused by the refusal of policymakers to adopt a market based approach to our problems.

Some of the tariffs and barriers to trade that we have in place are the very reason why inflation has been stubborn here. And the quality of life of the average Nigerian has been on downward slide each year that these tariffs persist.

From Rice, Flour, Cement, Cars to Urea and now Petrol, we have tariffs or outright bans in place for many things that have adversely impacted the common man while enriching a minute few.

Policymakers in Nigeria have been very wicked and unfair to the average Nigerian over the last 20 years due to this "local self-sufficiency slogan."

The US & KSA are the two largest producers of Crude Oil in the world, yet they both import oil in large quantities for various reasons.

UAE sits on a desert, that is millions of tonnes of sand, yet it imports sand for its construction industry. For example, the famous Burj Khalifa was built with imported sand from Australia.

The point here is, there is no crime if Dangote Refinery imports its crude too. What should matters to the average citizen is that the FGN gets the best value for Nigeria's crude, whether sold to DR or to offshore off takers.

Government should be pro-people and pro-markets, not just pro-business.

Take a look at the details of some of our tariffs/duties in the attached image, and ask yourself whether we are not tariffing ourselves to poverty? Are these guys not mad?!

Sugar and Flour have upto 70% tariffs on them, imagine if the tariffs on both is reduced to 5% - 10%? Will that not immediately impact the price of bread? Will that not put more money in people's pockets? Will it not help reduce hunger?

We need to explain fundamental economics to the average Nigerian so that they can understand the evil our policymakers are doing to us.

Dbegining:
I'll start with the same thing i ended with when i spoke to you the last time: I hooe you're a billionaire (at least in naira) .That will give meaning to your position on things.

You are talking about operating cost? D you know how much in pure profits the refinery is making?

The government stifled competitors from importing fuel just fr ONE MAN!

He went to court to ask to be the sole importer of fuel at one time.

The chairman of that oil regulatory company that was fired the other day was because he refused to do Dangote's bidding. Cause Dangote can't tell me that's the first government official he has seen that's corrupt. And then why didn't he also serve as a whistle blower for the rest?


Let the government FREELY open importation and let the free economy decide things. THAT'S FUNDAMENTAL ECONOMICS!

Stop supporting evil be it the government or private individuals!

Let keep centiment apart, Dangote is exploiting Nigerians in all his businesses, can you explain why Dangote cement produced in Nigeria and exported to other Africa countries is cheaper in the countries where it is exported to?

HacheNoire:
Like we don’t know what Nigerian importers go for!

Can we compare the octane value and quality of both?

These western hand tools just desperate to attack that refinery. It’s bad business for them!

At a time when African countries are now being dependent on the refinery, they spring up another propaganda about cost!

Putindbutt:
https://punchng.com/oil-shock-wbank-predicts-3-1-point-inflation-rise-for-nigeria/

E be like say na so E be oh, Dangote just dey press our neck anyhow dey pretend as if e dey help us, he will increase #300 today reduce #30 tomorrow

Good2go1:
Let keep centiment apart, Dangote is exploiting Nigerians in all his businesses, can you explain why Dangote cement produced in Nigeria and exported to other Africa countries is cheaper in the countries where it is exported to?

Exploiting?
Are they supposed to be buying at the price with you that have a tax master in Aso Rock?

RealLordZeus:
I always thought this type of news is a propaganda.

Can someone sensible explain to me why imported petrol will be cheaper than the locally refined.

G R E E D

RealLordZeus:
I always thought this type of news is a propaganda.

Can someone sensible explain to me why imported petrol will be cheaper than the locally refined.

because cost of production in Nigeria is higher than in some other countries like China and co.

Putindbutt:
https://punchng.com/oil-shock-wbank-predicts-3-1-point-inflation-rise-for-nigeria/

World Bnk and IMF, these two are a group of evil, what they are simply saying is for Nigeria to keep importing Refined Petroleum Products while enriching other nations who buy our crude oil for dirt cheap whilst we forget producing value added products from the same crude oil we have capacity to produce these things from. Isn't that crazy. The same way they want W/African states to sell their cocoa to european nations and forget about producing its derivatives. Yet the foolish leaders we have do stupidly follow their ideas just to be relevant.


What an utter nonesense.

jmoore:
Imported rice is cheaper too. Those people that have been abusing Nigerian farmers and celebrate importation of rice are shocked that imported petrol is cheaper.

Imported petrol is very poor quality rejected petrol.Take it frm someone who has been in d oil n gas for 15yrs

Regardless of the tax, there is no reason it should be cheaper than the country it was manuafactured, because he will incur transport cost to export it, export duties and import duties there maybe other associated charges

Gboss247:
Exploiting?
Are they supposed to be buying at the price with you that have a tax master in Aso Rock?

Good2go1:
Regardless of the tax, there is no reason it should be cheaper than the country it was manuafactured, because he will incur transport cost to export it, export duties and import duties there maybe other associated charges

Which is it cheaper than where it was manufactured?