Depot Owners Turn to Dangote Refinery To Buy Petrol As Price Changes Again

• More depot owners across Nigeria are now sourcing petrol from Dangote Refinery, attracted by cheaper prices
• Despite rising crude oil price, Dangote refinery has kept its prices steady between N770/litre and N835/litre
• Th stability of Dangot petrol prices has helped markers buying directly keep their filling stations prices below N870

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

Depot owners across Nigeria are turning to the Dangote Petroleum Refinery to purchase petrol at cheaper rates.

The isreal, Iran conflicts has let to increase in global oil prices which has made importation very expensive.

Dangote increase petrol price

The Dangote Refinery, Africa’s largest with a refining capacity of 650,000 barrels per day, is now a go-to source for cheaper petroleum products.

Recent tanker reports from June 11 and 18 show that major marketers and depot operators including NNPC Retail (PPMC), Rain Oil, Ardova, NIPCO, MRS Oil, Prudent Energy, and others have lifted Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), and Jet A1 from the facility.

A key reason behind the shift is Dangote’s competitive pricing. As of mid-June, PMS was sold at N770 per litre for coastal delivery and N835 per litre at the gantry.

AGO and Jet A1 are priced in U.S. dollars but can be paid in naira using the prevailing exchange rate. These rates offer significant savings compared to imported products.

Dangot increase price

However, on Friday, June 21, the Dangote Petroleum Refinery raised its ex-depot price to ₦880 per litre.

According to PetroleumPrice.ng, the new price was stated in a Pro Forma Invoice (PFI) issued to one of the marketers.

A Pro Forma Invoice is a preliminary bill of sale, essentially a detailed estimate, sent to a buyer before goods or services are delivered.

Fuel prices at filling stations

With the price increase, various filling stations are expected to adjust their petrol prices.

Already, changes have been observed at several fuel stations, including Mobil

Checks by Legit.ng on Thursday evening showed that MRS and Ardova fuel stations were still selling at N865 per litre, but this is not expected to last long.

Meanwhile, NNPC retail stations were selling at N870 per litre.

As the sole domestic PMS supplier operating at such scale, Dangote effectively sets the tone for the downstream market.

However, the refinery’s reliance on imported US crude and rising operational costs, coupled with exchange rate instability, have forced the company to raise prices after months of maintaining steady rates.

Marketers list 4 concerns as Dangote's plan free fuel distribution

Earlier, Legit.ng reported that Oil marketers under the aegis of PETROAN are unhappy with Dangote Refinery’s move to begin fuel distribution.

They fear it could lead to job losses and business shutdowns across Nigeria's petroleum value chain.

The president of PETROAN told Legit.ng that it is important for the government to step in and avoid a monopoly.

Source: Legit.ng