Dangote Petroleum Refinery has started selling Premium Motor Spirit, PMS, directly to independent oil marketers following the breakdown of its supply arrangement with private depot owners, Peak Newspaper reports.
Under the new arrangement, only marketers able to purchase a minimum of 250,000 litres are eligible to lift petrol directly from the refinery. Previously, Dangote relied largely on about 20 depot owners to evacuate and distribute products nationwide.
Industry checks indicate that the shift allows the refinery to bypass traditional depot networks and move fuel closer to retail outlets, potentially reducing distribution bottlenecks.
Speaking on the development, Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said the earlier deal collapsed over pricing disagreements. He explained that both parties had agreed to peg prices to the Eurobob benchmark, the international reference price for petrol, with adjustments made in line with global crude movements.
According to him, Dangote refinery initially fixed a coastal price of N806 per litre and a gantry price of N828 per litre. However, when international crude prices fell, depot owners pushed for a sharper reduction than what was implemented.
Olatide said the disagreement prompted marketers to turn to fuel imports in November 2025, leading to a surge in import volumes and congestion by oil vessels at Nigerian ports.
In response, Dangote refinery cut its petrol price from N828 per litre to N699 per litre, a reduction of N129 per litre, described as the largest single price cut recorded in 2025.
The move marks a significant shift in Nigeria’s downstream fuel supply structure, with direct refinery to marketer sales now playing a larger role in product distribution.
