Refiners Explain Price Gap Between Imported Petrol and Local Supply

Nigeria’s refining operators have said that imported petrol appears cheaper than locally refined fuel largely because of differences in product quality and production methods, not because imports are inherently more efficient.

The Crude Oil Refiners Association of Nigeria (CORAN) argued that many imported fuel products are blended grades sourced from international markets, which are generally cheaper to produce compared to fully refined petrol produced domestically.

According to the group, a fair comparison should be based on identical fuel specifications, warning that comparing different grades could lead to misleading conclusions about pricing in the downstream sector.

CORAN also maintained that Nigerian refiners do not enjoy special cost advantages, noting that both local plants and international suppliers often purchase crude oil at global benchmark prices without significant discounts.

The association’s comments follow recent reports suggesting that imported petrol is about 12 percent cheaper than fuel supplied by the Dangote Refinery, a development that has sparked renewed debate over pricing structure and market competitiveness in the sector.

Industry stakeholders say the discussion highlights wider concerns about fuel pricing transparency, quality standards, and the impact of global market dynamics on Nigeria’s domestic refining ambitions.