- Dangote Refinery has suspended coastal sales of petrol to Lagos, raising concerns over rising prices
- Imported petrol accounted for 43% of total supply in Nigeria in July, complicating local demand forecasts
- Suspension targets less accessible markets, increasing pressure on Lagos traders facing limited supplies
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
The petrol market in Lagos is facing fresh pressure after the Dangote Petroleum Refinery and Petrochemicals suspended coastal sales of Premium Motor Spirit (PMS) to depot owners and importers in the state.
The development has coincided with petrol prices crossing the ₦1,200-per-litre mark in some depots, raising concerns over the potential impact on marketers, transport operators and consumers.
Credit: Bloomberg/Contributor
Source: UGC
Sources familiar with the refinery’s operations said the suspension is part of a deliberate strategy to redirect locally refined petrol to areas where imported supplies are less readily available, according to a report by PetroleumPriceNG.
“The suspension of coastal sales to Lagos is still ongoing. It is aimed at redirecting products to locations where imported products are unavailable. Lagos has quite some imported petrol,” a source said.
Why Dangote is restricting Lagos supply
The decision comes amid growing concerns at the refinery over the volume of imported petrol entering the Nigerian market and the difficulty of accurately forecasting domestic demand.
According to data available to the refinery, imported PMS accounted for about 43 per cent of total petrol supplied into Nigeria in July.
The refinery considers the volume significant enough to influence its production, inventory and distribution decisions.
Lagos, which remains one of Nigeria’s largest fuel markets, has received substantial volumes of imported petrol. As a result, Dangote Refinery is directing more of its output towards markets where imported products are either unavailable or less dominant.
The strategy is intended to ensure that its locally refined petrol reaches areas where it is most needed rather than adding more supply to a market already receiving significant imports.
Import licences create fresh uncertainty
Dangote Refinery has also questioned the continued issuance of petroleum product import licences despite its stated capacity to meet and exceed Nigeria’s domestic petrol requirements.
The refinery said uncertainty over the volume and timing of imported petrol makes it increasingly difficult to forecast how much locally refined product the domestic market will absorb.
To maintain uninterrupted supply, the refinery keeps substantial volumes in inventory and commits significant funds to storage, logistics and working capital.
However, maintaining large inventories becomes increasingly expensive when there is limited visibility over competing imports and their arrival schedules.
Rising exports as domestic demand comes under pressure
The refinery has explained that its increased petrol exports in recent months should not be interpreted as an inability to supply the Nigerian market.
Rather, it said exports provide an outlet for products that cannot be efficiently absorbed domestically because of competing imported supplies.
When refined products remain in storage for extended periods, the refinery incurs additional financing and logistics costs. Evacuating excess volumes therefore becomes necessary to keep its operations efficient.
Dangote Refinery has consequently called for greater transparency around import licences, expected product inflows and improved coordination among downstream industry players.
What the Lagos suspension means
For Lagos-based fuel traders, the immediate concern is the continued suspension of coastal PMS sales from Dangote Refinery.
The refinery is instead prioritising markets where imported petrol is less available, potentially putting additional pressure on Lagos marketers who depend on coastal supplies.
Credit: Bloomberg/Contributor
Source: Getty Images
The development also highlights the growing tension between locally refined petrol and imported products as Nigeria’s downstream sector adjusts to the emergence of a major domestic refinery.
With petrol prices already crossing ₦1,200 per litre in some areas, the latest supply shift could become another important factor shaping pump prices across Lagos and other parts of the country.
Petrol supply from Dangote drops
Legit.ng earlier reported that the Dangote Petroleum Refinery supplied 25.8 million litres of Premium Motor Spirit per day to the Nigerian domestic market in July 2026, down 21 per cent from the 32.5 million litres per day recorded in June, according to the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA).
The July figure is the lowest monthly domestic supply the refinery has recorded in 2026.
Source: Legit.ng