Dangote Refinery Drops 12 Marketers, Names 25 Firms to Sell Petrol Under New Deal
- Dangote Refinery cut its authorised petrol marketers from 37 to 25, keeping major operators including NNPC, NIPCO and MRS
- The refinery has returned to EBOB-linked petrol pricing, tying its selling price to a five-day average of a European benchmark
- The impact on pump prices remains uncertain, as global markets, transport costs, distribution margins and competition also shape what motorists pay
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Pascal Oparada is a journalist with Legit.ng, covering technology, energy, stocks, investment, and the economy for over a decade.
Dangote Petroleum Refinery has unveiled a revised list of 25 petroleum marketers authorised to distribute its petrol across Nigeria, reducing its previous consortium of 37 companies as it restructures its domestic fuel sales operations.
The decision removes 12 marketers from the arrangement and comes amid fresh changes to the refinery's petrol pricing system.
Source: Getty Images
According to industry publication Petroleumprice.ng, the new consortium includes major downstream operators such as NIPCO, MRS, Ardova, Rainoil, A.A. Rano and Nigerian National Petroleum Company Limited (NNPCL).
An industry source attributed the restructuring to concerns over the pricing practices of some members of the previous consortium.
However, the refinery has not publicly detailed the specific reasons for excluding individual companies.
Dangote Refinery names 25 selected marketers
The revised list contains established petroleum distributors and other operators expected to participate in the refinery's domestic petrol supply arrangement.
The 25 selected companies are:
- Techno Oil
- Pivot
- Soroman
- NIPCO
- MRS
- Ardova
- Fagbem
- Masters
- Bovas
- Optima
- Nepal Energies
- Mainland
- NNPC
- Sobaz
- Northwest
- Danmarna
- A.A. Rano
- Rainoil
- Pinnacle
- AYM Shafa
- Salbas
- Heyden
- Eterna
- Total
- Bongas
The reduction from 37 to 25 companies represents a nearly 32% contraction in the consortium.
It remains unclear whether the restructuring will affect the volume of petrol allocated to individual marketers or the refinery's wider distribution network, according to PetroleumPriceNG.
Dangote changes petrol pricing arrangement again
The consortium review coincides with Dangote Refinery's decision to return to an EBOB-linked pricing model for petrol.
Under the arrangement, petrol prices are determined using a five-day average of a European gasoline benchmark, allowing movements in international petroleum markets to influence domestic selling prices.
The refinery initially adopted the benchmark-linked system when it introduced direct petrol sales through consortium marketers.
It subsequently replaced the arrangement with fixed gantry pricing, providing marketers with a predetermined loading price.
During that earlier transition, the refinery reduced its petrol gantry price from ₦1,265 to ₦1,210 per litre, representing a ₦55 reduction, or approximately 4.35%.
That adjustment was part of the previous pricing arrangement and should not be interpreted as a fresh reduction following the latest restructuring.
What new arrangement means for petrol prices
With the return to EBOB-linked pricing, domestic petrol costs could become more responsive to international gasoline price movements.
This means marketers may experience price increases or reductions depending on global market conditions and other applicable pricing factors.
However, the refinery has retained fixed gantry pricing for automotive gas oil (AGO), commonly called diesel.
Source: UGC
For Nigerian motorists, the immediate impact remains uncertain.
Although changes in refinery loading prices can influence pump prices, transportation costs, distribution margins and competition among filling stations also determine what consumers eventually pay.
The latest restructuring therefore signals a significant shift in Dangote Refinery's marketing strategy, but whether it will translate into cheaper petrol for Nigerians remains to be seen.
10 marketers selling petrol below Dangote’s Price
Legit.ng earlier reported that several petroleum marketers are selling Premium Motor Spirit (PMS), commonly known as petrol, below Dangote Refinery’s N1,293 per litre depot price, highlighting differences in the cost of the commodity across Nigeria's supply market.
A review of the latest depot price list shows that Aiteo has the lowest price at N1,277 per litre, while Nipco sells at N1,279 per litre.
Source: Legit.ng
