Dangote Refinery Sparks Hope of Cheaper Fuel as Marketers Register for Direct Supply

• Ahead of August 15, 2025, the Independent Petroleum Marketers Association of Nigeria (IPMAN) members have begun registering with Dangote
• The association’s members are gearing up for the nationwide fuel distribution by the mega refinery
• While experts have hailed the move, other marketers described it as detrimental to middlemen and logistics operators

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Nigeria’s journey toward a cheaper and more reliable petrol supply has taken a major step forward as independent marketers begin formal registration with the Dangote Refinery for direct fuel delivery.

The refinery, Africa’s largest, is scheduled to start distributing Premium Motor Spirit (PMS) and diesel directly to retailers from August 15, bypassing traditional depots and intermediaries.

Mixed reactions from industry players

This development follows the company’s earlier announcement on June 15, 2025, of plans to deploy 4,000 Compressed Natural Gas (CNG)-powered tankers nationwide.

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These tankers will serve marketers, petrol dealers, manufacturers, telecom firms, aviation companies, and other large-scale consumers.

While some associations, such as the Natural Oil and Gas Suppliers Association (NOGASA) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have criticised the move, claiming it sidelines middlemen, IPMAN has embraced the plan.

Speaking to The Nation, IPMAN’s National President, Alhaji Abubakar Maigandi, described the move as “a welcome development” that would boost Nigeria’s energy security.

He recalled periods of scarcity when marketers struggled to source products and expressed optimism that direct supply from Dangote would change the game.

Marketers ready for distribution

Maigandi revealed that many IPMAN members have already completed registration and are preparing their filling stations for the first deliveries.

“We have started cleaning our stations, waiting for his trucks to come and discharge,” he said.

“Most of our marketers have registered, just waiting for the programme. We had been crying; we were not getting products.”

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Potential impact on fuel prices

Although Nigerians are hopeful for lower prices, Maigandi cautioned that petrol costs depend on several factors beyond crude oil prices—especially the exchange rate.

“It is not only the cost of crude oil that determines PMS price, even the dollar rate affects it,” he noted.

Still, there is some immediate good news. The refinery has already reduced its gantry price from ₦840 to ₦820 per litre, prompting marketers to recalculate their pump prices. The new rates are expected to be announced soon.

Why it matters now

This shift comes at a critical time, as recent fuel price hikes and forex volatility have placed heavy pressure on consumers and businesses.

Direct supply from Dangote could not only stabilise distribution but also help shield the market from unnecessary markups.

If the rollout proceeds smoothly on August 15, Nigerian motorists could soon see tangible relief at the pump, an outcome many have been waiting for in the face of rising living costs.

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What Nigerians are saying

Reactions on social media have been swift.

“If Dangote can really sell cheaper, I’ll be his number one customer,” one Lagos driver said.

“We’ve heard promises before, but I hope this one brings real change,” wrote a Facebook user.

“Cutting out middlemen is the way to go. Let’s see the prices drop!” added another.

With hopes high and the countdown ticking, all eyes are now on August 15.

Dangote receives 4,000 trucks for nationwide distribution

Legit.ng earlier reported that the Dangote Petroleum Refinery & Petrochemicals has officially begun receiving a fleet of 4,000 compressed natural gas-powered trucks, a major step toward reshaping Nigeria’s fuel distribution network.

The trucks, imported through Apapa Port, will support the refinery’s nationwide fuel logistics programme set to launch on August 15, 2025.

Valued at an estimated ₦720 billion, the fleet represents one of the largest capital investments in Nigeria’s downstream sector in recent years.

Source: Legit.ng