Dangote Refinery Begins Direct Petrol Sales to Independent Marketers, Bypasses Depots Owners
- Dangote Petroleum Refinery has started selling petrol directly to independent marketers who can buy at least 250,000 litres
- The shift followed a breakdown in pricing agreements, which led marketers to increase fuel imports in November 2025
- In response to rising imports, the refinery slashed its gantry price from N828 to N699 per litre, the biggest price reduction in 2025
Legit.ng journalist Victor Enengedi has over a decade's experience covering energy, MSMEs, technology, banking and the economy.
Dangote Petroleum Refinery has begun supplying Premium Motor Spirit (PMS), commonly called petrol, directly to independent oil marketers that can purchase at least 250,000 litres per transaction.
Previously, the refinery relied largely on about 20 depot operators to lift petrol from its gantry and distribute it across the country.
Source: UGC
However, findings by Vanguard show that the new sales model enables the refinery to sidestep traditional depot systems and move products closer to filling stations.
In an interview with Vanguard, Jeremiah Olatide, Chief Executive Officer of Petroleumprice.ng, explained that Dangote shifted to selling directly to independent marketers after its arrangement with private depot owners broke down.
Olatide said:
“The refinery currently sells directly to independent marketers because the previous arrangement with depot owners has crashed."
According to him, both parties initially agreed that Eurobob, the international benchmark for gasoline prices in Europe, would guide pricing. Under this agreement, prices were to be reviewed and adjusted whenever the benchmark changed.
Olatide noted that the refinery fixed prices at N806 per litre for coastal sales and N828 per litre at the gantry. However, after the first month, global crude oil prices declined, prompting depot operators to demand a corresponding reduction in Dangote’s gantry price.
Although the refinery reduced its prices, depot owners reportedly felt the adjustment did not adequately reflect international price movements. This disagreement, Olatide said, pushed marketers to resort to fuel imports in November 2025.
As a result, fuel importation rose sharply during the month, leading to congestion at the ports with numerous vessels waiting to discharge.
In response to the growing competition from imported products, Dangote Refinery significantly reduced its petrol price from N828 per litre to N699 per litre — a drop of N129 per litre, marking the steepest price cut recorded in 2025.
For nearly a year, Dangote Refinery and major oil marketers have been locked in an intense price war.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) disclosed that the prolonged battle, largely between Dangote Refinery and leading marketers, resulted in billions of naira in losses for its members in 2025.
Despite these losses, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPCL), Mr. Bayo Ojulari, stated that the escalating competition is ultimately beneficial to consumers.
Source: Getty Images
Dangote Refinery delivers 43 million litres of petrol
In related news, Legit.ng reported that Dangote Refinery confirmed that production and distribution are continuing as normal, with over 43 million litres of petrol supplied.
According to refinery officials, the volume loaded on Saturday, January 3, 2026, alone was sufficient to cover more than half of Nigeria’s estimated daily petrol demand.
The clarification was issued to counter rumours of a maintenance shutdown, as the company reassured motorists and marketers that there is no threat of fuel scarcity.
Source: Legit.ng
