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- The Dangote Refinery has begun its long-awaited nationwide fuel distribution with a new plan
- The refinery also announced cheaper petrol prices in 11 states, further putting depot owners on the defensive
- The development comes a few days after the plant slashed its gantry price to N820 per litre
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Dangote Petroleum Refinery has announced a new petrol distribution scheme across 11 states, offering cheaper prices and free delivery to its partner oil marketers.
Beginning today, the refinery pegged its gantry price at N820 per litre, with retail pump prices set at N841 in Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, down from N865.
Credit: Bloomberg/Contributor
Source: Getty Images
List of states selling cheaper Dangote fuel
In Abuja, Delta, Rivers, Edo, and Kwara, petrol will sell at N851 per litre, with the company promising to expand distribution to more states in the coming weeks.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) quickly directed its members to register with Dangote Refinery to access direct supply.
A memo signed by IPMAN President, Abubakar Maigandi, and National Secretary, James Tor, urged members to resume payments and prepare for nationwide distribution.
Investment in logistics and CNG trucks
To support its new pricing strategy, Dangote announced a large-scale rollout of 10,000 CNG-powered trucks, aimed at reducing logistics costs and boosting efficiency.
“Even though we recently noticed how the CNG prices doubled a week ago, that will not deter our 10,000 CNG truck roll-out this year,” the company stated.
The move is expected to ease fuel delivery bottlenecks and further strengthen the refinery’s distribution network across Nigeria.
Marketers push back
According to a report by Daily Sun, despite the apparent relief for consumers, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has criticised Dangote’s pricing approach.
In a statement, DAPPMAN Executive Secretary, Olufemi Adewole, argued that the cuts were often timed when other importers had cargoes en route, creating price shocks that undermine competition and strain businesses.
“Even more concerning is the refinery’s pattern of offering lower prices to international buyers while quoting higher rates to local off-takers,” the statement noted, accusing Dangote of prioritising exports over Nigerians.
DAPPMAN further claimed that the so-called “free delivery” is misleading since marketers must lift at least 25% of their allocation directly from the refinery gantry using Dangote-owned trucks, incurring extra costs.
“Not a messiah,” DAPPMAN warns
DAPPMAN maintained that Nigeria’s downstream fuel stability does not rest on one refinery alone.
While acknowledging Dangote’s importance, the group stressed that its refinery only meets 30–35% of national demand, with the balance supplied by long-standing marketers who import and distribute under strict regulatory oversight.
“The Dangote Refinery is a valuable contributor, but it is not a messiah,” DAPPMAN said.
“Nigeria’s downstream sector is powered by an ecosystem of refiners, depots, marketers, transporters, and regulators working together to ensure nationwide access to fuel.”
What’s ahead for consumers?
As consumers welcome lower pump prices, the clash between Dangote and rival marketers highlights the fragile balance in Nigeria’s petroleum sector.
Analysts warn that while short-term relief is likely, the long-term effects could include market instability, reduced competition, and financial pressure on smaller players.
Credit: Bloomberg/Contributor
Source: UGC
For now, Nigerians in the 11 states will enjoy cheaper fuel—but the battle for control of the market is only just beginning.
Depot owners slash petrol rates
Legit.ng earlier reported that Nigeria’s downstream oil sector is bracing for a seismic shift as Dangote Petroleum Refinery sets its petrol gantry price at ₦820 per litre, effective Monday, September 15, 2025.
The refinery’s direct supply of Premium Motor Spirit (PMS) — complete with free nationwide delivery- is already disrupting depot pricing.
By absorbing logistics costs, typically an extra ₦10–₦20 per litre, Dangote has redefined the rules of engagement in the market.
Source: Legit.ng
