핵심요약

• 나이지리아는 2026년 상반기에 39.5%의 휘발유 가격 급등을 기록했습니다.
• 중동 분쟁은 글로벌 원유 가격을 100달러/배럴 이상으로 밀어 올렸습니다.
• 해상 운송 경로 변경으로 인해 선박 항해 시간이 약 18일에서 40일로 두 배 이상 증가했습니다.
• 나이지리아는 글로벌 가격 충격을 가장 직접적으로 소비자에게 전달받았습니다.

도입

본 기사는 지정학적 갈등이 국제 유가 및 물류 비용을 어떻게 증폭시키고, 이것이 나이지리아와 같은 신흥 시장에 어떻게 즉각적이고 극적인 인플레이션으로 전이되는지를 분석합니다. 투자자들은 이러한 지정학적 리스크가 에너지 인플레이션과 지역 경제의 취약성에 미치는 영향을 이해해야 합니다.

본문 1: 지정학적 리스크와 물류 비용의 증폭

중동 지역의 분쟁은 국제 원유 공급에 즉각적인 불안정성을 야기하며 글로벌 유가 벤치마크를 100달러/배럴 이상으로 상승시켰습니다. 이로 인해 호르무즈 해협을 통한 해상 운송이 차단되면서 선박들은 항로를 변경하여 희망봉을 우회하게 되었고, 이는 운송에 필요한 시간이 약 18일에서 거의 40일로 두 배 이상 증가하는 결과를 낳았습니다. 이러한 물류 병목 현상은 국제 유제품의 운송 비용을 급격히 증가시켰고, 이는 최종적으로 소비자 가격에 반영되는 구조적 압력으로 작용했습니다. 즉, 지정학적 사건이 물리적인 공급망의 지연을 통해 에너지 가격 상승의 근본적인 원인이 됩니다.

본문 2: 시장 메커니즘과 시장 전이 효과

나이지리아의 경우, 국내 시장이 규제된 시스템 하에서 운영되었기 때문에 글로벌 유가 충격이 즉각적으로 소비자 수준의 주유소 가격으로 전이되는 효과를 보였습니다. 이는 국내 정제 및 유통 시스템이 국제 시장의 변동성에 취약하게 반응한다는 점을 시사합니다. 국내 시장의 규제 완화와 함께 외부 충격에 대한 완충 장치가 부족했을 때, 외부 변수는 국내 인플레이션을 통제 불가능한 수준으로 증폭시키는 촉매제가 됩니다. 따라서 지역 내 에너지 가격 안정화를 위해서는 국제 에너지 시장의 변동성에 대한 국내 시스템의 탄력성을 강화하는 것이 중요합니다.

본문 3: 신흥 시장의 취약성과 장기적 전망

나이지리아 사례는 신흥 시장이 글로벌 에너지 시장의 변동성에 얼마나 취약한지를 명확히 보여줍니다. 국내 정제 능력의 발전에도 불구하고 외부 충격에 대한 직접적인 노출은 여전히 높은 수준입니다. 장기적으로 볼 때, 에너지 안보를 확보하고 인플레이션을 관리하기 위해서는 국제 공급망의 다변화와 더불어, 지역 차원의 에너지 가격 책정 메커니즘을 강화하여 외부 충격의 직접적인 영향을 최소화하는 노력이 필수적입니다. 향후 에너지 시장의 안정성은 지정학적 환경뿐만 아니라 국내 경제 구조의 회복 탄력성에 달려있다고 판단됩니다.

결론

이번 사건은 지정학적 갈등이 에너지 시장의 가격 변동성을 증폭시키고, 특히 규제가 완화된 시장에서는 그 충격이 소비자에게 가장 직접적으로 전달됨을 입증합니다. 향후 투자 관점에서 볼 때, 지역 경제의 에너지 인플레이션 위험을 평가할 때 지정학적 리스크와 국내 유통 시스템의 취약성을 반드시 함께 고려해야 할 것입니다. 향후 에너지 시장의 안정화는 글로벌 공급망의 회복력과 각국의 거시 경제 정책의 조화에 달려있다고 전망됩니다.

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원문 링크: https://news.google.com/rss/articles/CBMif0FVX3lxTE5BWUZjWkFuMVpUMmw5WTJZbGg1LVU3T01CVkZZUm1Xc1VpQ3JveXlwUzhPZmhYQ0Y4TEVWTlNrMnBJREZpS0ZVY1hza2FxaE5iZGNiVDZPaWw5VDZlZDdYY3NrbTBZVDV1LTBJVlZteWJrTmVMZ2tVSGptS3R5VW8?oc=5

US-Iran war: Nigeria tops Africa in petrol price surge - Punch Newspapers

Nigeria recorded the sharpest increase in petrol prices across Africa during the first half of 2026, with pump prices surging by 39.5 per cent as the Middle East conflict disrupted global crude oil supplies and exposed the country’s vulnerability to external market shocks despite growing domestic refining capacity. The disclosure was contained in the Nigeria Half-Year Downstream Industry Report (January–June 2026) released on Tuesday by the Major Energies Marketers Association of Nigeria. According to the report, the conflict involving Israel, Iran and the United States, which began on February 28, 2026, triggered widespread uncertainty in global oil markets, sending crude oil prices above $100 per barrel and sharply increasing the cost of transporting petroleum products worldwide. The report explained that the temporary disruption of shipping through the Strait of Hormuz forced oil tankers to abandon the traditional route and sail around the Cape of Good Hope, more than doubling voyage time from about 18 days to nearly 40 days. MEMAN stated, “During the first half of 2026, severe geopolitical tensions in the Middle East sparked immediate supply anxieties, injecting a heavy risk premium that drove international crude benchmarks past $100/bbl. “This price surge was quickly compounded as the conflict bottlenecked traffic through the Strait of Hormuz, forcing maritime oil tankers to reroute around the Cape of Good Hope and stretching what is typically an 18-day voyage into a nearly 40-day journey.” The association said Nigeria’s deregulated petrol market transmitted the global price shock directly to consumers, making the country the hardest hit in Africa. It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The disclosure was contained in the Nigeria Half-Year Downstream Industry Report (January–June 2026) released on Tuesday by the Major Energies Marketers Association of Nigeria. According to the report, the conflict involving Israel, Iran and the United States, which began on February 28, 2026, triggered widespread uncertainty in global oil markets, sending crude oil prices above $100 per barrel and sharply increasing the cost of transporting petroleum products worldwide. The report explained that the temporary disruption of shipping through the Strait of Hormuz forced oil tankers to abandon the traditional route and sail around the Cape of Good Hope, more than doubling voyage time from about 18 days to nearly 40 days. MEMAN stated, “During the first half of 2026, severe geopolitical tensions in the Middle East sparked immediate supply anxieties, injecting a heavy risk premium that drove international crude benchmarks past $100/bbl. “This price surge was quickly compounded as the conflict bottlenecked traffic through the Strait of Hormuz, forcing maritime oil tankers to reroute around the Cape of Good Hope and stretching what is typically an 18-day voyage into a nearly 40-day journey.” The association said Nigeria’s deregulated petrol market transmitted the global price shock directly to consumers, making the country the hardest hit in Africa. It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

According to the report, the conflict involving Israel, Iran and the United States, which began on February 28, 2026, triggered widespread uncertainty in global oil markets, sending crude oil prices above $100 per barrel and sharply increasing the cost of transporting petroleum products worldwide. The report explained that the temporary disruption of shipping through the Strait of Hormuz forced oil tankers to abandon the traditional route and sail around the Cape of Good Hope, more than doubling voyage time from about 18 days to nearly 40 days. MEMAN stated, “During the first half of 2026, severe geopolitical tensions in the Middle East sparked immediate supply anxieties, injecting a heavy risk premium that drove international crude benchmarks past $100/bbl. “This price surge was quickly compounded as the conflict bottlenecked traffic through the Strait of Hormuz, forcing maritime oil tankers to reroute around the Cape of Good Hope and stretching what is typically an 18-day voyage into a nearly 40-day journey.” The association said Nigeria’s deregulated petrol market transmitted the global price shock directly to consumers, making the country the hardest hit in Africa. It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The report explained that the temporary disruption of shipping through the Strait of Hormuz forced oil tankers to abandon the traditional route and sail around the Cape of Good Hope, more than doubling voyage time from about 18 days to nearly 40 days. MEMAN stated, “During the first half of 2026, severe geopolitical tensions in the Middle East sparked immediate supply anxieties, injecting a heavy risk premium that drove international crude benchmarks past $100/bbl. “This price surge was quickly compounded as the conflict bottlenecked traffic through the Strait of Hormuz, forcing maritime oil tankers to reroute around the Cape of Good Hope and stretching what is typically an 18-day voyage into a nearly 40-day journey.” The association said Nigeria’s deregulated petrol market transmitted the global price shock directly to consumers, making the country the hardest hit in Africa. It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

MEMAN stated, “During the first half of 2026, severe geopolitical tensions in the Middle East sparked immediate supply anxieties, injecting a heavy risk premium that drove international crude benchmarks past $100/bbl. “This price surge was quickly compounded as the conflict bottlenecked traffic through the Strait of Hormuz, forcing maritime oil tankers to reroute around the Cape of Good Hope and stretching what is typically an 18-day voyage into a nearly 40-day journey.” The association said Nigeria’s deregulated petrol market transmitted the global price shock directly to consumers, making the country the hardest hit in Africa. It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

“This price surge was quickly compounded as the conflict bottlenecked traffic through the Strait of Hormuz, forcing maritime oil tankers to reroute around the Cape of Good Hope and stretching what is typically an 18-day voyage into a nearly 40-day journey.” The association said Nigeria’s deregulated petrol market transmitted the global price shock directly to consumers, making the country the hardest hit in Africa. It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The association said Nigeria’s deregulated petrol market transmitted the global price shock directly to consumers, making the country the hardest hit in Africa. It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

It said, “Operating under a newly deregulated system, Nigeria experienced an immediate price transmission at the pumps. Data from the height of the crisis revealed that Nigeria recorded a 39.5 per cent gasoline price surge, the sharpest increase across Africa, more than doubling the price jumps seen in regional peers like Egypt (14.3 per cent).” Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

Despite the sharp rise in prices, the report said the period also marked a significant turning point in Nigeria’s downstream petroleum industry as local refining displaced imported fuel at an unprecedented pace. According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

According to MEMAN, the expansion of the Dangote Petroleum Refinery significantly reduced Nigeria’s dependence on imported Premium Motor Spirit. The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The report stated, “Against the backdrop of this intense price shock, the downstream sector achieved a significant structural shift away from import dependence toward domestic refinery supply, driven primarily by the operational scale-up of the Dangote Refinery, which by the review period accounted for the majority of local PMS supply.” It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

It added, “Premium Motor Spirit (PMS) local refining share expanded from 38.9 per cent in 2025 to 81.7 per cent over the review period. Concurrently, local units met an average of 64 per cent of diesel demand, while domestic gas processing facilities captured 90.5 per cent of the cooking gas market.” However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

However, the association warned that increased domestic refining had yet to eliminate Nigeria’s dependence on imported petroleum products. According to the report, local refinery production remained below national demand during critical periods between February and April, forcing regulators to approve fuel imports to prevent shortages. MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

MEMAN said, “However, the charts also highlight that domestic production alone was still structurally unable to fully bridge national demand, especially during peak periods. This supply-to-consumption deficit became visually evident between February and April, when the national consumption curve systematically crossed above domestic refinery output lines.” It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

It added, “To prevent severe product stockouts and stabilize the grid, the regulatory framework actively intervened by issuing refined product import licenses to selected marketers, a hybrid supply approach that successfully buffered fuel security during the worst of the international logistical shocks.” The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The report further revealed that marketers drastically reduced fuel inventories because of soaring replacement costs, leading to a sharp decline in Nigeria’s strategic fuel reserves. Reps seek roadmap for stable fuel supply Babachir’s prediction of Atiku’s defeat lacks basis – ADC Cash outside banks drops by N486bn to seven-month low According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

According to MEMAN, “The high-cost, volatile open-market environment forced aggressive realignments in inventory management across the value chain, as marketers optimized liquidity by drawing down physical buffers rather than holding expensive static wet stocks.” It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

It added, “This structural shift caused national PMS stock sufficiency to drop progressively from 33 days in January to a low of 16 days by May, falling drastically short of the statutory 30-day safety benchmark, before recovering to roughly 20 days in June as licensed imports began filtering into the system.” The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The marketers warned that the rapid depletion of fuel reserves highlighted the need for government-backed strategic petroleum reserves to cushion future global supply disruptions. The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The report stated, “The rapid depletion of refined sufficiency days during the global shipping crisis underscored Nigeria’s lack of a resilient buffer, prioritizing the urgent downstream requirement to establish robust, state-backed Strategic Product Reserves and a dedicated Crude Oil Feedstock Reserve to insulate domestic refineries and consumers from sudden external supply chain closures.” MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

MEMAN also disclosed that persistently high fuel prices forced consumers to cut back on fuel purchases. It stated, “Furthermore, sustained open-market pricing triggered strong consumer demand elasticity, reducing average daily consumption by 22.3 per cent for PMS and 17.5 per cent for AGO.” The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The association maintained that while Nigeria’s downstream reforms were beginning to yield results through higher domestic refining capacity, effective regulation would remain essential to sustain competition and protect consumers. It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

It added, “As domestic refining expands and the downstream sector evolves, sustained regulatory vigilance will remain essential to fostering fair competition, protecting consumers, strengthening investor confidence, and ensuring that the benefits of ongoing reforms are realised across the entire petroleum value chain.” Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

Under a section titled “Impact of the Middle East Conflict – Strait of Hormuz,” MEMAN said the conflict fundamentally altered global petroleum trade routes after the strategic waterway became temporarily inaccessible. The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The report explained that suppliers increasingly shifted cargoes from the Persian Gulf to the U.S. Gulf Coast and West Africa as shipping companies sought safer alternative routes. According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

According to MEMAN, “The start of the conflict in the Middle East on 28th February 2026 and the subsequent temporary closure of the Strait of Hormuz significantly reshaped global crude oil and petroleum product trade flows during the first half of the year. Under normal market conditions, the Gulf serves as the primary export hub for refined petroleum products moving to Europe, Asia and parts of Africa.” It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

It continued, “However, with access through the Strait severely restricted, cargoes were rerouted to alternative supply sources, particularly from the U.S. Gulf Coast and West Africa. The longer sailing distances, coupled with higher freight and insurance costs, increased delivered product costs and placed additional pressure on global shipping capacity.” MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

MEMAN further stated, “Under normal conditions, some Gulf-origin cargoes could reach key Asian markets in approximately 18 days via the Strait of Hormuz; however, rerouting around longer alternative routes extended voyage times to nearly 40 days, significantly delaying supply flows and increasing logistical costs. The disruptions reinforced the importance of diversified refining centers and demonstrated the growing strategic role of Atlantic Basin suppliers in maintaining global product availability during supply shocks.” The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

The first half of 2026 was one of the most volatile periods for Nigeria’s downstream petroleum sector since the full deregulation of the petrol market. Pump prices became fully responsive to movements in international crude oil prices, foreign exchange fluctuations, freight costs and supply chain disruptions following the removal of petrol subsidies. Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

Although the operational expansion of the 700,000-barrels-per-day Dangote Petroleum Refinery substantially reduced Nigeria’s reliance on imported petrol during the review period, local refining capacity was still insufficient to meet peak national demand, prompting the Nigerian Midstream and Downstream Petroleum Regulatory Authority to approve imports by selected marketers to maintain energy security. The report underscores the opportunities and challenges of Nigeria’s transition to a market-driven downstream sector, where increased domestic refining has strengthened supply resilience but global geopolitical events continue to exert a significant influence on domestic fuel prices.

Source: https://news.google.com/rss/articles/CBMif0FVX3lxTE5BWUZjWkFuMVpUMmw5WTJZbGg1LVU3T01CVkZZUm1Xc1VpQ3JveXlwUzhPZmhYQ0Y4TEVWTlNrMnBJREZpS0ZVY1hza2FxaE5iZGNiVDZPaWw5VDZlZDdYY3NrbTBZVDV1LTBJVlZteWJrTmVMZ2tVSGptS3R5VW8?oc=5