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Home Energy

Dangote Refinery Petrol Sales Shift as Direct Marketer Deal Begins

Dangote Refinery petrol sales move direct to marketers after depot deal collapses, reshaping Nigeria’s fuel distribution market.

AwaNews by AwaNews
January 9, 2026
in Energy, Business & Economy
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Dangote Refinery Cuts Petrol Price to ₦699, Sparks Fresh Drop Across Fuel Market
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Dangote Refinery petrol sales have entered a new phase as the refinery begins selling directly to independent marketers after talks with depot owners collapsed. The change allows qualified marketers to buy Premium Motor Spirit directly from the refinery, provided they can lift a minimum of 250,000 litres. The move is already reshaping fuel distribution across Nigeria.

Until now, Dangote Refinery relied largely on about 20 private depot owners to lift petrol from its gantry and distribute nationwide. With the new model, the refinery is bypassing traditional depot networks and pushing fuel closer to retail outlets, reducing layers in the supply chain.

Industry checks show the breakdown followed disagreements over pricing. According to Petroleumprice.ng CEO, Jeremiah Olatide, the original agreement tied prices to Eurobob, the European gasoline benchmark used in international fuel pricing. Under that deal, Dangote and depot owners agreed on a coastal price of ₦806 per litre and a gantry price of ₦828 per litre.

Problems emerged after global crude prices fell. Depot owners demanded a sharper reduction in Dangote’s gantry price to reflect international movements. While the refinery adjusted prices downward, marketers reportedly felt the cuts were insufficient when compared with global benchmarks.

That gap triggered a shift back to imports. In November 2025, fuel importation surged, with several vessels reportedly waiting at Nigerian ports. The development altered market dynamics and weakened demand from local depot owners.

Dangote Refinery petrol sales strategy changed soon after. In response to rising imports and competitive pressure, the refinery cut its gantry price from ₦828 per litre to ₦699 per litre. The ₦129 drop was described as the largest single price reduction recorded in 2025.

With depot negotiations stalled, Dangote Refinery petrol sales are now focused on independent marketers willing to buy in bulk. Market watchers say the move could lower distribution costs, improve supply efficiency, and intensify price competition at retail stations.

The shift is also expected to put pressure on private depot operators, many of whom rely heavily on gantry lifting margins. Analysts believe the success of the direct-sales model could redefine fuel pricing and logistics across the downstream petroleum sector in the coming months.

Tags: Dangote Refineryfuel distributionNigeria Energyoil marketerspetrol pricing
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