Imported Petrol Cheaper Due to Lower Quality, CORAN Reveals

The Crude Oil Refiners Association of Nigeria (CORAN) has rejected claims that imported petrol is cheaper than locally refined fuel, arguing that the difference stems from quality disparities rather than efficiency.

CORAN’s Publicity Secretary, Eche Idoko, said imported fuels are often blended products from countries like Kazakhstan and Eastern Europe, meeting only minimum regulatory standards.

“In terms of quality, they would not compete with the quality that we produce from our refineries here. Blending is cheaper than refining,” he explained.

He criticised the World Bank for failing to make a like-for-like comparison, noting that fuel grades differ in density, flash point, and pour point, which affect pricing. “It has to be apple with apple and not apple with pear or orange,” Idoko said.

Idoko clarified that blending is not illegal but produces lower-grade fuels that cost less. “The higher the grade, the higher the price. If refining produces more environmentally friendly emissions, it will definitely be more expensive,” he added.

He also blamed high local fuel costs on crude supply challenges, saying refineries, including Dangote, buy crude at a premium without incentives.

“We don’t enjoy discounts. Dangote and other refineries are buying from traders internationally, quoted at Brent,” he noted.

The World Bank had reported that imported petrol was about 12% cheaper than Dangote’s supply, urging Nigeria to reopen fuel imports to restore competition. It said Dangote’s ex-depot price of ₦1,275 per litre compared to an import-parity price of ₦1,122 per litre highlighted distortions in the market.

Following backlash, the World Bank clarified that its position was not a blanket endorsement of imports but part of broader reforms to improve competition and protect consumers. It also urged Nigeria to provide targeted support for vulnerable households.

Currently, the Dangote refinery supplies over 92% of Nigeria’s petrol, after the regulator suspended import licences in January 2026, leaving imports at just 8% of total supply.