The Crude Oil Refiners Association of Nigeria says the lower price of imported petrol compared to locally refined products is mainly due to differences in quality, not refining efficiency.
The association’s spokesperson, Eche Idoko, explained that many petroleum products brought into Nigeria are blended fuels that only meet basic regulatory standards. While blending is legal, he said it is cheaper than full refining and usually produces lower-grade fuel than what is processed in local refineries.
He argued that comparisons made by the World Bank Group did not clearly state whether the fuels being assessed were of the same grade. According to him, important specifications such as density, flash point and pour point were not outlined, making it difficult to fairly compare imported petrol with locally refined products.
Idoko added that locally refined petrol is produced to higher environmental and performance standards, which increases production costs.
He also blamed the high cost of domestic fuel on the challenges faced by refiners, including the purchase of crude oil at premium prices without incentives or discounts. He noted that the Dangote Refinery and other refiners source crude from international traders at global rates, limiting any cost advantage.
The comments followed a report in the Nigeria Development Update by the World Bank, which stated that imported petrol was about 12 per cent cheaper than petrol supplied by the Dangote refinery. The report said the refinery’s ex-depot price was around ₦1,275 per litre in March, compared to an estimated import-parity price of ₦1,122 per litre.
The World Bank advised the Federal Government to reopen the petrol import market to encourage competition, noting that the suspension of import licences since January 2026 had reduced market competition.
However, the report triggered criticism on social media, prompting the World Bank to withdraw it and clarify that its position was part of broader market reform discussions rather than a blanket call for increased fuel imports.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that the Dangote refinery supplied over 90 per cent of petrol consumed in February after import licences were suspended.
Reports also indicate the regulator has reviewed the decision amid supply concerns linked to the Middle East crisis.
CORAN maintained that any assessment of fuel prices must consider product grade and refining process to ensure a fair comparison between imported and locally refined petrol.
