Dangote Refinery Rolls Out 10-Day Credit, Free Fuel Delivery for Petrol Stations
- Dangote Refinery introduces a 10-day credit facility to support fuel dealers nationwide
- Reduced gantry price of ₦699 per litre, alongside free delivery, boosts market competitiveness
- New strategy aims to alleviate cash flow issues and high distribution costs for petrol marketers
Nigeria’s downstream petroleum market is seeing another major shake-up as the Dangote Petroleum Refinery unveils a new supply arrangement designed to ease pressure on petrol station owners and dealers nationwide.
In a move that could reshape fuel distribution dynamics, the refinery has introduced a 10-day credit facility backed by bank guarantees, alongside free direct delivery of petrol to registered outlets.
Source: Twitter
10-Day credit to ease cash flow
According to a statement released by the Dangote Group on Tuesday, December 30, 2025, via its official X handle, the new initiative allows participating petrol dealers to access fuel on credit for up to 10 days.
The facility is secured by a bank guarantee, reducing risk while giving retailers more breathing space to manage working capital.
Under the scheme, dealers are required to place a minimum order of 5,000 litres to qualify. Payments can then be made within the 10-day window, a significant relief for independent marketers who often struggle with upfront cash requirements in Nigeria’s post-subsidy fuel market.
Industry watchers say the move reflects growing competition and innovation in the liberalised downstream sector.
Lower gantry price, free delivery
Beyond credit, the refinery is also offering fuel at a reduced gantry price of ₦699 per litre. This represents a ₦129 drop, or about 15.6 percent, from the previous price of ₦828 per litre.
In addition, Dangote Refinery will provide free direct delivery to registered petrol stations, eliminating one of the biggest cost drivers for marketers: transportation and logistics.
The company said deliveries will commence shortly once outlets complete registration.
By combining lower prices with zero logistics costs, the refinery is positioning its products as some of the most competitively priced in the domestic market.
Pressure mounts on importers
Analysts say the package of incentives could intensify the ongoing price war in Nigeria’s downstream petroleum sector.
Fuel importers and smaller marketers, many of whom lack access to cheap financing or integrated logistics, may find it difficult to match the terms offered by Dangote Refinery.
The statement noted that the initiative directly targets two longstanding challenges for retailers: high distribution costs and tight cash flow.
With credit-backed supply and free logistics, dealers are better placed to stabilise pump prices and improve margins.
“This is a clear sign of how Nigeria’s liberalised fuel market is evolving,” the company said, highlighting how scale, balance sheet strength, and logistics capacity are becoming key competitive advantages.
According to an energy analyst, Adeola Yusuf, the move will ease fuel distribution in general and offer relief to marketers burdened with high logistic costs.
We are seeing a systematic takeover of the downstream sector by the Dangote Refinery," Yusuf said.
"Importers are now feeling the squeeze of the refinery's dominance in the downstream sector."
Call for dealers to register
Dangote Group urged petrol station owners and dealers across the country to register promptly to take advantage of the scheme.
The company said early registration will ensure seamless access to the discounted pricing, credit window, and logistics support.
Market observers believe the strategy could help Dangote Refinery rapidly deepen its market access while accelerating the shift away from fuel imports.
For consumers, the development may translate into a more stable supply and potentially lower pump prices, depending on market conditions and dealer margins.
As competition heats up, the downstream sector appears set for further realignment, with integrated local refiners increasingly calling the shots.
Source: UGC
Earlier, Legit.ng reported that the mega refinery has gone offline for routine turnaround maintenance.
The facility's management confirmed that the maintenance will last into early 2026 and may see the refinery upgraded to 700,000bpd, from the current 650,000 capacity.
Dangote Refinery crashes petrol prices by N200
Legit.ng previously reported that Dangote Petroleum Refinery has closed 2025 with a dramatic year-on-year reduction in petrol prices, cutting its ex-depot rate by ₦200.50 per litre and reinforcing its growing influence over Nigeria’s downstream market.
The move marks one of the sharpest sustained price compressions in recent years and highlights how local refining is reshaping fuel economics.
Data compiled from Petroleumprice.ng show that on December 19, 2024, Dangote Refinery sold premium motor spirit (PMS) at an opening ex-depot price of ₦899.50 per litre, following an earlier adjustment from ₦970 per litre.
Source: Legit.ng
