Dangote Refinery sells direct to marketers, as deal with depot owners crashes
SKAiF NewsNG SNN
By Udeme Akpan
Dangote Petroleum Refinery has commenced selling Premium Motor Spirit (PMS), also known as petrol, to independent oil marketers capable of buying a minimum of 250,000 liters.
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Before now, the refinery had depended mostly on 20 depot owners to lift the product from its gantry for distribution nationwide.
Checks by Vanguard indicated that the new approach allows Dangote to by-pass established depot networks and deliver fuel closer to retail outlets.
Speaking in an interview with Vanguard, the Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said: “The refinery currently sells directly to independent marketers because the previous arrangement with depot owners has crashed.
“It was agreed that the process would be determined by Eurobob, which primarily refers to the benchmark price for European gasoline (petrol), that is the international benchmark. That for every benchmark, the price would be discussed and agreed to be adjusted.
“They agreed on N806 coastal rate and N828 gantry price as published by Dangote refinery. After the first month, the international crude oil benchmark dropped, and the private depot owners requested a reduction in the Dangote gantry price.
“The reduction was effected but not what they expected in comparison with international prices. It was this difference that made the marketers turn to imports in the month of November 2025.
“Importation surged in November, and there were a large number of vessels at berth.
“So, when Dangote noticed the new development, he slashed the price from N828 per litre to N699 per litre, a 129 per cent reduction and the highest in 2025.”
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