Major energy marketer reveals secret behind Nigeria’s cheaper fuel

• Fuel is cheaper successful Nigeria than successful neighbouring countries, chiefly due to the fact that of debased taxes, according to the large vigor marketers
• MEMAN’s Executive Secretary, Clement Isong, explained that Nigeria’s substance taxation is conscionable 1%, portion different countries enforce importantly higher taxes
• He besides credited the Dangote refinery and Nigeria’s ample substance depletion for helping to support petrol prices debased done economies of scale

Legit.ng writer Victor Enengedi has implicit a decade's acquisition covering Energy, MSMEs, Technology, Banking and the Economy.

Fuel successful Nigeria is cheaper than successful different West African countries, chiefly due to the fact that of debased taxes, according to the Major Energies Marketers Association of Nigeria (MEMAN).

This was explained by MEMAN’s Executive Secretary, Clement Isong, successful an interview.

Oil marketer supports Dangote, confirms Nigeria's petrol prices are little than neighbours'
Source: UGC

Why petrol terms is little successful Nigeria

Isong supported a caller connection by Dangote Group’s President, Aliko Dangote, who said Nigerians wage astir 55% of what radical successful different West African nations wage for petrol.

According to Punch, Isong added that successful immoderate cases, people successful adjacent countries wage 50% much than Nigerians. He said 1 large crushed for this is that substance taxes successful Nigeria are overmuch lower.

In Nigeria, the full taxation connected substance is conscionable 1% divided betwixt 0.5% for infrastructure backing and 0.5% for the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

Isong said:

“The taxation is little successful Nigeria. The taxation connected substance depletion successful different countries is higher. The lone taxation successful Nigeria, I would say, is 1 per cent. 0.5 per cent for infrastructure funds, and 0.5 per cent for NPDRA. In different countries, the taxation is overmuch higher.”

Isong said different origin is that Nigeria enjoys what economists telephone "economies of scale." Because Nigeria has a ample colonisation and precocious substance consumption, petrol sells faster and successful larger volumes.

This leads to little costs per portion compared to countries wherever request is little and products enactment unsold for longer periods.

Isong besides confirmed that the Dangote Refinery has played a large relation successful keeping substance prices debased successful Nigeria.

Isong said:

“Well, it is existent besides that for the past 1 oregon 2 months, helium is the terms leader, the idiosyncratic who has kept prices successful Nigeria low. He is correct.”

Dangote compares Nigeria's petrol terms with others

During a caller sojourn by ECOWAS Commission President Dr. Omar Touray to the Dangote refinery, Aliko Dangote said that astir Nigerians don’t cognize they are paying acold less for petrol than neighbouring countries.

He mentioned that petrol from his refinery sells for astir N815 to N820 per litre, portion successful different West African countries, the aforesaid merchandise sells for astir $1 per litre (roughly N1,600).

Dangote said his refinery has besides helped bring down prices for different products, similar diesel, which dropped from N1,700 to N1,100 per litre.

Oil marketer supports Dangote, confirms Nigeria's petrol prices are little than neighbours'
Source: Getty Images

He added that these reductions person had a affirmative interaction crossed galore sectors of Nigeria’s economy, including agriculture, mining, and industry.

However, immoderate substance marketers and importers are not happy. They accidental that the dependable driblet successful prices caused by Dangote’s refinery has led to big fiscal losses for their businesses, costing them billions of naira.

States wherever residents paid much for petrol

Meanwhile, Legit.ng earlier reported that the mean retail price of petrol surged by 76.73% year-on-year to N1,239.33 successful April 2025, contempt a flimsy 1.77% dip from March’s N1,261.65.

According to the National Bureau of Statistics (NBS), prices alteration importantly by state, with Imo, Jigawa, and Sokoto signaling the highest mean prices, portion Yobe had the lowest.

Regional disparities persist, with the South East experiencing the highest mean petrol prices and the South West the lowest, highlighting ongoing volatility successful substance pricing contempt caller terms moderation efforts.

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Source: Legit.ng