Key Points

• Dangote Petroleum Refinery now sells petrol straight to independent marketers, bypassing depot owners.

• Price disagreements and import surge forced Dangote to cut gantry price from N828 to N699 per litre.

• The move could improve fuel supply to stations but pressures depot owners who controlled distribution.

Dangote Petroleum Refinery has started selling petrol directly to independent oil marketers after its arrangement with major depot owners broke down.

The refinery is now supplying Premium Motor Spirit, also known as petrol, to marketers who can buy at least 250,000 litres at a time.

Depot Network Deal Ends

Until recently, Dangote relied mainly on about 20 depot owners to lift products from its gantry and distribute fuel across the country. That system has now changed.

Checks show that the new approach allows the refinery to bypass the traditional depot network and move fuel closer to filling stations, especially those run by independent marketers.

Pricing Disagreements Trigger Shift

Industry sources say the shift followed disagreements over pricing between Dangote and private depot owners.

Speaking with Vanguard, the Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, explained that the previous pricing arrangement collapsed after crude oil prices dropped on the international market.

According to him, both sides had agreed to use the Eurobob benchmark, which tracks petrol prices in Europe, as the basis for pricing.

Under the deal, prices were meant to be reviewed and adjusted whenever the benchmark changed.

Initial Prices and Conflicts

Dangote initially fixed the price at N806 per litre for coastal sales and N828 per litre at the gantry. Problems started after global crude prices fell and depot owners asked for a bigger price cut.

Although Dangote reduced the price, depot owners felt the adjustment did not reflect the drop in international prices. As a result, many marketers turned back to fuel imports in November 2025.

Olatide said fuel importation rose sharply that month, with many vessels arriving at Nigerian ports.

Dangote Cuts Prices, Moves Directly to Marketers

He explained that once Dangote noticed the growing number of imports, the refinery responded by cutting its gantry price from N828 per litre to N699 per litre.

The reduction of N129 per litre was the biggest price drop recorded in 2025.

Despite the price cut, the relationship with depot owners had already broken down, leading Dangote to adopt direct sales to marketers.

Impact On Fuel Distribution

This move is likely to change how fuel gets around the country, especially for independent marketers who have always complained about high depot charges and difficulty getting products.

Experts say it could make petrol more available at filling stations, but it will also put pressure on depot owners who have always controlled how fuel moves in Nigeria.