Fuel price
*Dangote boosts supply to 40.1m litres/day
*As Wintersmith begins crude test runs
The volume of Premium Motor Spirit, otherwise known as petrol, imported into the country declined by 42.2 per cent in January 2026 to 24.8 million litres per day, down from 42.8 million litres recorded in December 2025, a report published by the Nigerian Midstream and Downstream Petroleum Regulatory Authority, NMDPRA, has indicated.
The report, released over the weekend, also showed that petrol supplied by the $20 billion Dangote Petroleum Refinery to the domestic market rose by 25.3 per cent last month to 40.1 million litres per day, from 32 million litres recorded in December 2025.
NMDPRA stated that total daily petrol supply in January 2026 stood at 64.9 million litres, representing a 12.5 per cent decline compared to the 74.2 million litres supplied in December 2025.
According to the Authority, the country recorded 33 days of petrol sufficiency during the month. “Days of sufficiency stock boosted by 13 per cent between December 2025 and January 2026 due to improved supply performance by DPRP,” the report added.
The regulator disclosed that while the daily consumption benchmark remained at 50 million litres, actual consumption (based on truck-out data) averaged 60.2 million litres per day for petrol. It also reported daily truck-out volumes of 19.2 million litres for Automotive Gas Oil (diesel), 3.5 million litres for aviation fuel, and 4,860 metric tonnes of LPG. On the performance of local refineries, the report stated that the Dangote Refinery operated at 61.27 per cent capacity in January, while the three Federal Government-owned refineries managed by NNPC Limited remained shut down.
Meanwhile, the Winters-mith Refining and Petrochemical Company Limited has commenced crude oil test runs on the second phase of its refinery in Imo State, raising expectations of improved domestic petroleum product supply in the coming months. The refinery currently operates with an installed capacity of 5,000 barrels per day (bpd). Commissioned in November 2020, it produces Automotive Gas Oil (diesel), Dual Purpose Kerosene, DPK, naphtha and heavy fuel oil for the domestic market.
However, Phase Two of the project, which is designed to significantly expand output, has been undergoing pre-commissioning activities since late 2025. When completed, the expansion is expected to raise total refining capacity to about 50,000 bpd, marking a major leap from its present output level.
In its latest report released at the weekend, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) confirmed that the facility has begun introducing crude oil into its processing units as part of the commissioning process.
The regulator stated that “introduction of hydrocarbon commenced,” indicating that the plant has moved beyond mechanical completion into live operational testing.
Industry analysts say the development signals progress in Nigeria’s modular refinery segment, which is seen as critical to reducing dependence on imported petroleum products, boosting local value addition, and strengthening energy security.
If successfully completed, the Phase Two expansion would significantly increase local refining volumes, support supply of diesel and other products to industrial users, and contribute to easing pressure on foreign exchange spent on fuel imports.
The expansion also comes amid ongoing efforts by the Federal Government to deepen domestic refining capacity and improve efficiency across the midstream and downstream value chain.
Speaking on the state of the downstream and midstream sectors, the Authority Chief Executive, Engr. Saidu Mohammed, said Nigeria’s downstream petroleum sector “is witnessing an irreversible renaissance, driven by bold reforms, investment, and regulatory clarity.”
He noted that under the Petroleum Industry Act, Nigeria’s downstream market is now fully liberalised and “no longer defined by scarcity and supply uncertainty,” with pricing increasingly determined by market fundamentals.
On domestic refining, he described the Dangote Petroleum Refinery as a major game changer and attributed ongoing economic reforms to a reduction in import-related fiscal losses of over N6 trillion.
Engr. Mohammed assured stakeholders that the current dispensation would deliver a regulator that is fair, firm and decisive in overseeing the midstream and downstream sectors.
He emphasised that regulation remains central to sustainable growth, stating that “regulation must enable value, not inhibit it,” and concluded that confidence is the true currency of any market.
Vanguard
