The development came as the Federal Government opened high-level discussions with Dangote Petroleum Refinery over its switch to dollar-denominated petroleum product sales, with negotiations focusing on increasing crude oil supplies to the refinery in naira and potentially restoring naira-denominated fuel transactions.
An analysis of the Nigerian Midstream and Downstream Petroleum Regulatory Authority’s June 2026 statistics showed that average daily Premium Motor Spirit imports jumped to 18.1 million litres from 5.9 million litres in May.
The increase represents an additional 12.2 million litres of imported petrol daily, or approximately 207 per cent month-on-month.
Despite the surge in imports, Nigeria recorded an overall improvement in petrol availability during the month, with total average daily supply rising to 50.6 million litres, compared with 47.4 million litres in May.
However, the improved supply was largely driven by imports as domestic refinery contributions fell sharply.
Local refineries supplied an average of 32.5 million litres per day in June, down from 41.5 million litres in May—a decline of nine million litres daily, equivalent to approximately 21.7 per cent.
Consequently, imported petrol accounted for about 35.8 per cent of the country’s total daily supply in June, a significant increase from approximately 12.4 per cent in the preceding month.
The figures underline the continuing importance of imported products in maintaining market stability, despite Nigeria’s renewed push towards domestic refining and reduced dependence on foreign fuel.
Nevertheless, domestic refineries remained the country’s largest single source of petrol, contributing nearly two-thirds of the total PMS supplied to the market during the month.
The changing supply structure comes amid uncertainty over crude availability to domestic refiners, evolving import economics and adjustments in the procurement strategies of petroleum marketers.
FG, Dangote Open Talks Over Naira Sales
Meanwhile, the Federal Government has commenced discussions with Dangote Petroleum Refinery aimed at resolving concerns surrounding the refinery’s recent decision to sell petroleum products in United States dollars.
Industry sources familiar with the negotiations said the Nigerian National Petroleum Company Limited, the Nigerian Midstream and Downstream Petroleum Regulatory Authority and the Nigerian Upstream Petroleum Regulatory Commission are engaging the refinery to explore a commercially sustainable arrangement.
At the heart of the discussions is the possibility of substantially increasing crude oil supplies to the refinery under a naira-denominated arrangement.
Sources said the refinery could, in turn, consider returning to naira-denominated petroleum product sales once a stable framework guaranteeing sufficient crude supply in local currency is established.
“The government understands the full implications of the refinery’s dollar pricing policy,” a senior industry source said.
“Discussions are ongoing with NNPCL, NMDPRA and NUPRC to reach a common ground. The focus is on how Dangote Refinery can receive substantially more crude oil in naira, while the refinery is also open to returning product sales to naira once that framework is firmly in place.”
The refinery recently switched sales of Premium Motor Spirit, Automotive Gas Oil and Aviation Turbine Kerosene from naira to dollars, citing changes in its crude procurement structure and increased exposure to foreign exchange risks.
Industry sources said the refinery had increasingly purchased crude oil in dollars while selling a substantial portion of its refined products in naira, creating a currency mismatch and heightened foreign exchange exposure.
Aligning the currency of petroleum product sales with that of crude procurement was therefore seen as a means of reducing the refinery’s exposure to exchange-rate volatility.
Under the dollar-denominated pricing structure cited by industry sources, Dangote Refinery’s official gantry price for PMS stands at $0.779 per litre, while AGO and aviation fuel are priced at $1.087 and $0.942 per litre, respectively.
However, downstream market prices have moved higher, with depot prices monitored across Lagos, Port Harcourt, Warri and Calabar reportedly ranging between ₦1,190 and ₦1,230 per litre.
The development has heightened concerns that prolonged dollar-denominated transactions could increase foreign exchange demand among marketers and ultimately translate into higher pump prices for consumers.
The convergence of falling domestic refinery supply, surging imports and uncertainty surrounding the currency of petroleum transactions presents a fresh test for the Federal Government’s downstream reforms.
A successful agreement on expanded naira-for-crude supplies could potentially reduce foreign exchange pressure, strengthen domestic refining and provide greater price stability. But with negotiations still ongoing and no final agreement reached, the direction of Nigeria’s petrol market in the coming months will depend heavily on whether domestic refineries can secure adequate crude supplies and sustain production levels capable of reducing the country’s renewed reliance on imported fuel.
