Buyers Rush Dangote Refinery, Abandon Private Depots, Marketers React With Massive Price Cuts
- Private depots are bearing the brunt of the recent price slash offered by the Dangote Refinery
- Findings show that the mega refinery is buzzing with marketers seeking to lift petroleum products
- Meanwhile, marketers have responded with massive price cuts to stay competitive in the market
Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Petroleum Refinery is reshaping Nigeria’s downstream fuel market after recording a dramatic surge in petrol evacuations, with daily gantry loading now exceeding 2,000 trucks.
The spike comes as fuel marketers increasingly abandon private depots and redirect supplies to the Lekki-based mega refinery, drawn by aggressive pricing and more flexible commercial terms.
Source: Getty Images
Industry operators describe the development as a turning point that has altered long-standing supply routes and intensified competition across the petrol value chain.
₦699 per litre redraws supply routes
The catalyst for the shift is Dangote Refinery’s decision to reduce the ex-depot price of Premium Motor Spirit to ₦699 per litre.
Market data indicate that the price cut immediately triggered a migration of demand away from private depots, many of which face higher landing costs and limited import volumes.
Unable to match the new benchmark, several depot operators have been forced into reactive price reductions to retain customers.
Others are losing patronage altogether as marketers opt to lift directly from Dangote’s gantry to protect margins and stay competitive at the pump.
Energy analysts say the refinery’s pricing strategy has compressed margins across the downstream sector, creating a de facto reference price that is reshaping how petrol is sourced nationwide.
Smaller marketers gain direct access
Beyond price, Dangote Refinery has lowered its minimum purchase volume from 2 million litres to 250,000 litres.
This adjustment has opened direct access to independent and regional marketers who were previously excluded by high volume requirements.
The change has broadened participation and reduced reliance on intermediaries, allowing smaller operators to compete more effectively.
According to industry sources, this inclusive approach has accelerated the shift away from private depots, especially among marketers operating outside major coastal hubs.
Flexible payment terms drive confidence
The refinery has also introduced a 10-day bank guarantee framework that allows marketers to load PMS while finalising payment documentation.
This has eased cashflow constraints and reduced waiting times at the gantry.
According to a report by PetroleumPriceNG, logistics operators report round-the-clock truck movements, with loading activities extending late into the night.
As volumes climb, Dangote Refinery has emerged as Nigeria’s busiest fuel distribution hub, overtaking traditional coastal depots that once dominated supply.
Aliko Dangote, President of Dangote Group, said the reforms are designed to improve affordability and supply stability.
He noted that lower prices, smaller volumes and flexible payment options enable marketers of all sizes to serve consumers more efficiently.
IPMAN backs refinery sourcing
Momentum intensified after the Independent Petroleum Marketers Association of Nigeria urged its members nationwide to source petrol from Dangote Refinery. IPMAN President, Abubakar Maigandi Shettima, said the association controls over 80% of retail fuel outlets, adding that consistent supply from the refinery has reduced the risk of scarcity.
He disclosed that free delivery is expected to commence in January 2026, a move analysts say will further weaken the cost advantage of private depots and deepen consolidation around domestic refining.
Market consolidation accelerates
Analysts agree that Dangote Refinery’s price leadership, inclusive access and logistical efficiency are rapidly repositioning it as the dominant force in Nigeria’s downstream sector.
As private depots lose traffic and cut prices defensively, the fuel supply chain is increasingly revolving around local refining.
Source: UGC
The shift carries long-term implications for pump prices, competition and energy security, marking one of the most significant structural changes Nigeria’s fuel market has seen in decades.
Dangote Refinery resumes free petrol delivery
Legit.ng earlier reported that Dangote Petroleum Refinery has announced the resumption of its free direct delivery of Premium Motor Spirit to retail outlets across Nigeria, offering a new gantry price of ₦699 per litre.
The move marks a renewed push by the refinery to deepen its presence in the downstream market and ease persistent supply and pricing pressures in the fuel retail segment.
The refinery said the initiative will see petrol delivered directly to registered filling stations nationwide at no additional logistics cost, a development expected to significantly reduce distribution bottlenecks and lower operating expenses for marketers.
Source: Legit.ng
