Oando Suspends Petrol Importation as Dangote Refinery Boosts Domestic Fuel Supply

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Oando Plc has halted the importation of Premium Motor Spirit (PMS), as increased domestic output from the Dangote Petroleum Refinery continues to shift Nigeria away from reliance on foreign gasoline supplies.

The development was disclosed in Oando’s Half-Year and Nine-Month 2025 financial statements, where the company reported a 20% decline in trading revenue and a 42% drop in gross profit, largely driven by the reduction in imported petrol volumes.

According to the report, the expansion of local refining capacity — particularly output from the Dangote facility — has significantly altered market demand, making imported PMS less competitive. With more Nigerian fuel marketers now sourcing directly from domestic refineries, the need for foreign gasoline purchases has continued to shrink.

Industry analysts note that the move marks a turning point in Nigeria’s decades-long dependence on fuel imports, a situation that has historically strained foreign exchange reserves and increased consumer pump prices due to shipping and landing costs.

Energy observers say Oando’s shift underscores a broader realignment in the downstream sector, with marketers increasingly restructuring portfolios to adapt to local refining economics and Nigeria’s push toward energy self-sufficiency.

The trend is expected to accelerate as the Dangote Refinery ramps up to full operational capacity and state-owned and modular refineries continue to increase output across the country.

 

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