Dangote Refinery Starts Selling Petrol Directly to Marketers, Sidelines Depot Owners

Dangote Petroleum Refinery has begun selling Premium Motor Spirit (PMS) directly to independent marketers, bypassing depot owners. 

Only marketers able to purchase at least 250,000 litres per transaction can buy directly from the refinery. Previously, the refinery relied on about 20 depot operators to distribute petrol nationwide.

Why this shift is happening

The move follows a breakdown in pricing agreements with depot owners. Jeremiah Olatide, CEO of Petroleumprice.ng, said the refinery switched to direct sales after its arrangement with depot owners collapsed over price adjustments linked to global benchmarks.

Dangote initially fixed petrol at N806 per litre for coastal sales and N828 per litre at the gantry, guided by Eurobob, Europe’s gasoline benchmark. 

When international crude prices fell, depot owners demanded further cuts. Dangote reduced prices, but depot owners considered it insufficient.

Import surge and price response

The dispute prompted many marketers to import fuel in November 2025, causing port congestion. In response, Dangote cut its gantry price from N828 to N699 per litre, the largest drop in 2025.

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) reported that the price war with Dangote caused billions of naira in losses for marketers. NNPCL CEO Bayo Ojulari said the competition benefits consumers through lower prices.

Supply remains steady

Dangote confirmed over 43 million litres of petrol have been supplied, with volumes loaded on January 3, 2026, covering more than half of Nigeria’s daily demand. The refinery assured the public there is no risk of fuel scarcity.

Dangote’s direct sales model reduces depot influence and strengthens the role of independent marketers in Nigeria’s fuel distribution chain.