Energy
Dangote Supplies over 72% of Nigeria’s Petrol as Consumption Falls 17%
The Dangote Refinery supplied about 72.3 percent of Nigeria’s total domestic demand for petrol in March, while consumption fell by approximately 17 percent during the period under consideration from 56.9 million litres per day in February to 47.3 million litres last month.
Besides, although still modest compared to last year’s massive importation, the share of petrol imports in the supply mix surged by 96.7 percent month-on-month, rising from 3 million litres per day to 5.9 million litres/day during the period.
Data from the March 2026 fact sheet on midstream and downstream petroleum operations provided by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) yesterday, showed that the 47.3 million litres per day consumption for march fell below the national average of 50 million litres per day.
Overrall, the data indicated that total domestic petrol supply stood at 34.2 million litres per day in March. When measured against total consumption of 47.3 million litres per day, this placed Dangote Refinery’s contribution at approximately 72.3 percent of the domestic market, reaffirming its dominant role in the country’s fuel supply chain.
However, the supply mix also reflected a sharp increase in the role of imports. The fact sheet showed that petrol import contribution rose from 3 million litres per day in February to 5.9 million litres per day in March, equivalent to a 96.7 percent jump in import share.
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However, this increase in imported petrol between February and March was despite the downstream regulator’s insistence that it has halted the issuance of import licenses to oil marketers for months.
For over a year, owner of the 650,000 barrels per day facility in Lagos, Aliko Dangote, has pushed to end petrol imports in order to, according to him, protect local refining and grow the economy. Dangote’s refinery, which began production of petrol in 2024, has argued that Nigeria’s import licensing regime undermines local refining by allowing marketers to continue bringing in petrol even when domestic supply is increasing.
The company has maintained that under the Petroleum Industry Act (PIA), imports should only be permitted when there is a clear supply shortfall, not as a parallel system competing with local production.
On the other hand, oil marketers and a cross section of Nigerians believe that leaving the market solely for Dangote, without any competition from any other refinery, especially from NNPC’s defunct Port Harcourt and Warri refineries will lead to a monopoly and inflated pump prices.
The NMDPRA fact sheet further showed that other domestic refining sources contributed only marginal volumes, specifically diesel refining. The three operational modular refineries: Walter Smith, Edo Refinery, and Aradel collectively supplied about 0.629 million litres per day of diesel during the month.
Walter Smith refinery operated at an average capacity utilisation of 59.56 per cent, supplying 0.241 million litres per day. Edo Refinery recorded 64.69 percent utilisation with 0.051 million litres per day, while Aradel posted 58.84 percent utilisation, delivering 0.337 million litres per day.
Average diesel consumption during the period stood at 14.5 million litres daily, slightly above the 14 million litres per day national benchmark, despite the rising prices as a result of the Middle East crisis, indicating sustained demand from industrial and commercial users.
Similarly, in March, aviation fuel consumption remained lower at 2.1 million litres per day compared to the 3 million litres per day benchmark for the country and against the 2.9 million litres per day supplied in February.
In the whole gas market segment, total supply averaged 4.888 Billion Standard Cubic Feet Per Day (Bscf/d). Of this, 3.033 Bscf/d was supplied to the Nigeria LNG (NLNG), representing approximately 62 percent of total gas supply.
Domestic gas supply stood at 1.855 Bscf/d, with utilisation spread across key sectors. Gas-to-power accounted for 0.485 Bscf/d, commercial consumption stood at 0.430 Bscf/d, and gas-based industries utilised 0.601 Bscf/d.
In the Liquefied Petroleum Gas (LPG) segment, the NMDPRA data indicated that demand outpaced supply during the period. Average daily supply stood at 4,726 metric tonnes, while consumption reached 5,122 metric tonnes per day, leaving a shortfall of 396 metric tonnes daily. Also, retail LPG prices ranged between N980 and N1,450 per kilogramme nationally.
Fuel sufficiency data showed that petrol stock levels stood at 21 days, including pumpable volumes at the Dangote Refinery, diesel sufficiency was 55 days, aviation fuel stood at 109 days, and LPG at 14 days.
In the same vein, the midstream and downstream regulator put the Ajaokuta-Kaduna-Kano (AKK) gas pipeline completion level at 79.23 per cent; OB3 River Crossing at 59.50 per cent and the Odidi-Warri Expansion Project (OWEP) at 67.34 per cent completion rate.
On Tuesday, renewed escalation of the conflict between the United States and Iran pressured oil prices to over $94/barrel.
Current hostilities which witnessed American air strikes on Iranian targets and triggered global concerns of disruption to crude supplies through the Strait of Hormuz.
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Brent crude rose $4.06, or 4.49 percent, to $94.55 a barrel, while West Texas Intermediate gained $4.44, or 5.18 percent, to $90.20 a barrel. Murban crude also surged by $7.19, or 7.30 percent, to $105.60 a barrel, according to Oilprice.com.
The rally followed the United States’ fresh strikes on Iran, with Washington saying its forces had targeted the Islamic Revolutionary Guard Corps IRGC).
“Today (Tuesday) at 12 p.m. ET (1600 GMT), US forces began striking Islamic Revolutionary Guard Corps targets in Iran.
“The strikes follow recent attempted attacks by the IRGC against commercial shipping in the Strait of Hormuz and against American service members deployed to the region,” the US Central Command said.
The latest attacks have raised fresh concerns about the security around the Strait of Hormuz, a critical route for global oil supplies. Oil prices had already risen following the exchange of attacks between the two countries over the weekend, while reports of attacks on tankers further fuelled supply concerns.
Reuters reported that two supertankers carrying Saudi oil were struck by unknown projectiles within minutes of each other while travelling outbound through the Strait of Hormuz late on Monday, according to shipping intelligence and tracking firms.
Following the reports, Brent crude futures, which were already up about two percent, jumped by almost another two percent.
Iran has also threatened to prevent oil exports from the Gulf if the US continues its attacks. “If the enemy wants us not to export oil from the Persian Gulf, no one will be able to export oil,” Iranian Parliament Speaker Mohammad Baqer Qalibaf was quoted as saying by Iranian media.
The renewed confrontation has heightened fears that the six-month-old conflict could escalate into a wider war and threaten crude supplies from the oil-rich Gulf region.
The conflict had previously shifted towards sanctions, blockades and economic pressure, but the latest exchange of attacks has raised concerns about a return to sustained military confrontation.
US President Donald Trump warned Iran that it would face a stronger response if it retaliated against the latest American strikes.The US strikes came after Iranian missiles were fired at two US air bases in Jordan in response to an earlier American attack on Iran’s Larak Island.
The latest escalation also coincided with plans by Washington to impose additional economic sanctions on Tehran. US Treasury Secretary Scott Bessent said bank sanctions against Iran were likely to be announced this week and next, while warning that Washington would also target other entities doing business with the Islamic Revolutionary Guard Corps.
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has said that 172 Host Communities Development Trusts (HCDTs) have so far been incorporated by oil and gas companies operating across the country.
The chief executive, NUPRC, Oritsemeyiwa Eyesan, disclosed this while addressing the leadership of the Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in Abuja.
Under the Petroleum Industry Act (PIA), oil and gas companies, referred to as settlors, are required to contribute three percent of their Operating Expenditure from the preceding financial year into a Host Communities Trust Fund for the benefit of communities where they operate.
Eyesan said the NUPRC had been enforcing the provisions of the Act, particularly those relating to host communities and the obligations of operating companies, and had put in place regulations and procedures to streamline the process.
“We have laid out procedures for doing things and we have put regulations in place to streamline the process. So far, we have registered 172 HCDTs and we have been able to manage contributions by settlors,” she said.
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She said the trusts had funded the construction of schools, hospitals and other infrastructure, and had contributed significantly to peace and stability in previously volatile communities, which in turn had led to an increase in oil production.
Eyesan, however, admitted that some of the HCDTs had become subjects of litigation over disagreements on the constitution of their Boards of Trustees. She said the Commission had been working to ensure the trusts run smoothly, and that its Alternative Dispute Resolution Centre had played a key role in addressing some of the grievances.
She said that while the RMAFC’s interest in host communities was appreciated, oversight of how the funds are managed remained the exclusive preserve of the NUPRC.
The NUPRC boss also promised to investigate the lingering disagreement between Sterling Oil Exploration and Energy Production Company (SEEPCO) and its host community in Anambra State.
Responding, the chairman of the RMAFC, Dr Mohammed Bello Shehu, commended the NUPRC for overseeing reforms in the oil and gas sector that had contributed to growth in production.
Shehu said the RMAFC regards the upstream oil and gas sector as important, given that it accounts for a large share of revenue accruing to the Federation Account.
He thanked the NUPRC leadership for honouring the RMAFC’s invitation and called for stronger collaboration between the two institutions in the interest of the country.
Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) shows that crude oil imports by domestic refineries rose by 151.5 percent to 5.13 million barrels in July 2026, from 2.04 million barrels in June.
In a related development, domestic crude supply to refineries fell sharply during the month.
According to the NMDPRA’s July 2026 Midstream and Downstream Statistics, local refineries received a total of 17.88 million barrels of crude in July, comprising 12.75 million barrels supplied domestically and 5.13 million barrels imported.
Imported crude therefore accounted for 28.7 percent of total crude receipts by domestic refineries in July, while domestic supplies contributed the remaining 71.3 percent.
The 5.13 million barrels imported in July represented a significant rebound from the 2.04 million barrels recorded in June. It was also higher than the 2.08 million barrels imported in May and 0.41 million barrels in April.
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However, July’s import volume remained below the 9.43 million barrels recorded in March, the highest monthly volume so far in 2026.
The data showed that crude imports stood at 0.71 million barrels in January before rising to 4.25 million barrels in February and peaking at 9.43 million barrels in March.
Imports subsequently plunged to 0.41 million barrels in April, before recovering to 2.08 million barrels in May, 2.04 million barrels in June and 5.13 million barrels in July.
The report also disclosed that domestic crude supply to refineries declined by 25.4 percent month-on-month, falling from 17.08 million barrels in June to 12.75 million barrels in July.
In January, domestic refineries received 8.83 million barrels of domestic crude and 0.71 million barrels of imported crude, bringing total receipts to 9.54 million barrels.
The figure rose to 13.13 million barrels in February, comprising 8.88 million barrels of domestic crude and 4.25 million barrels of imports.
March recorded the highest total crude receipts at 20.92 million barrels, with domestic supply contributing 11.49 million barrels and imports 9.43 million barrels.
Total receipts stood at 18.37 million barrels in April, made up of 17.96 million barrels of domestic crude and 0.41 million barrels of imports.
In May, refineries received 17.92 million barrels, comprising 15.84 million barrels of domestic crude and 2.08 million barrels of imports, while June recorded 19.12 million barrels, made up of 17.08 million barrels of domestic crude and 2.04 million barrels of imports.
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