Dangote Petroleum Refinery has officially commenced the direct sale of Premium Motor Spirit (PMS), commonly referred to as petrol, to every licensed marketer, bringing an end to its earlier consortium-based marketing model.
The development is widely expected to alter the competitive landscape of Nigeria’s downstream petroleum industry.
According to Petroleumprice.ng, the refinery announced that all eligible marketers are now permitted to lift products directly from its loading gantry.
The new arrangement expands access to locally refined petrol, enabling a wider range of marketers to source fuel without relying on intermediary distribution structures.
Dangote’s new petrol price
The announcement coincides with a fresh reduction in the refinery’s ex-gantry petrol price, which has been cut from N1,125 per litre to N1,075 per litre.
In a statement, Dangote said: “The latest N50 per litre reduction brings the cumulative decrease in the refinery’s PMS ex depot price to N200 per litre since May 30, 2026, reducing the gantry price to 1, 075. Over the same period, the refinery has reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre.”
The refinery also adjusted its coastal loading price to match the ex-gantry rate, removing the pricing gap that previously existed between both supply channels.
Industry stakeholders believe the latest policy is likely to stimulate stronger competition among fuel marketers, depot operators, and importers as more buyers choose to obtain supplies directly from the refinery.
The change is also expected to lessen Nigeria’s reliance on imported petrol by improving the availability and affordability of domestically refined fuel.
With imported cargoes still attracting higher landing costs, locally refined products are becoming a more appealing alternative for marketers.
In addition, the development is expected to increase pressure on private depot owners, many of whom currently hold fuel stocks acquired at higher prices.
To remain competitive in the market, depot operators may have little choice but to lower their prices as marketers increasingly opt to purchase cheaper supplies directly from the refinery.
Fuel importers are also likely to experience heightened competition. Analysts say they may be compelled to adjust their pricing downward in order to remain competitive with locally refined petrol.
If the refinery continues to maintain direct sales to all licensed marketers, the policy could eventually lead to lower pump prices for consumers.
However, retail fuel prices will still be influenced by factors such as transportation and logistics costs, exchange rate fluctuations, and movements in global crude oil prices.
