Business
Dangote Refinery targets depot owners, major marketers in new marketing model
By Udeme Akpan, Energy Editor
Dangote Refinery has resumed the sale of Premium Motor Spirit (PMS), also known as petrol, to major marketers and depot owners under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The move represents a significant shift from the previous arrangement in which products were sold to all classes of buyers, including independent petroleum marketers.
Major marketers and depot owners cleared under the new model include Mobil/11 Plc, Total, Matrix, Rainoil, Nipco, Northwest, Ardova, Bovas, Pivot, AA Rano, AYM Shafa, NNPC and MRS.
Industry sources told Vanguard that the refinery has reverted to a controlled distribution structure similar to the framework introduced in October 2025, when only a limited number of major marketers were granted direct access to products.
An authoritative operator, who confirmed the development at the weekend, explained that the strategy is designed to allow depot owners and large marketers to moderate supply flows and influence market pricing more effectively, while independent oil marketers, including members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), will source products from depots.
Gantry price stands at N774 per litre
The Chief Executive Officer of Petroleumprice.ng, Olajide Jeremiah, who tracks downstream pricing trends, said the refinery’s gantry price remains unchanged at N 774 per litre.
“While the gantry price remains at ¦ 774 per litre, Dangote Refinery will no longer sell directly to independent petroleum marketers who typically purchase in smaller volumes,” he said.
“Instead, only depot owners with established storage facilities and approved major marketers will be eligible to lift products. Approval now follows defined procedures. Buyers must operate functional depot infrastructure or qualify as recognised major marketers before receiving clearance.
“The refinery will supply products through coastal vessel shipments, ship-based transactions and gantry loading for authorised buyers. Depot owners will then distribute products from their facilities and determine ex-depot prices.”
He added that early pricing signals suggest that ¦ 800 per litre could emerge as a new benchmark in Lagos, with Warri, Port Harcourt and Abuja trending around ¦ 820 per litre following recent adjustments at the depot level.
The National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, described the development as positive.
“This is a good arrangement and we hope that while deregulation remains in place, the government and operators will work toward sourcing more petroleum products locally from the refinery,” he said.
Another industry source noted that the move aims to reduce volatility and restore confidence across the downstream value chain, adding that the refinery had also reportedly absorbed losses during previous price fluctuations.
“The idea is to create balance within the ecosystem. Dangote does not want depot businesses to collapse, and it also wants Nigerians to benefit from a more predictable pricing structure. It is about creating a win-win situation,” the source said.
Under the new arrangement, retail marketers will access products indirectly through depot channels rather than purchasing directly from the refinery.
NMDPRA meets operators
Meanwhile, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Engr. Saidu Mohammed, on Thursday hosted a high-level meeting with wholesale suppliers of petroleum products at the Authority’s headquarters in Abuja.
The engagement brought together key downstream operators to deliberate on supply sufficiency, market stability, pricing transparency and regulatory compliance in Nigeria’s evolving petroleum market.
Wholesale suppliers commended the Authority for sustaining proactive dialogue with stakeholders and reaffirmed their commitment to compliance and industry best practices.
The meeting underscores NMDPRA’s continued efforts to strengthen transparency, efficiency and long-term sustainability in Nigeria’s midstream and downstream petroleum sectors.
Downstream market
Dangote Refinery’s sales model and the regulator’s intensified stakeholder consultations signal a coordinated push toward stabilising Nigeria’s downstream market amid full deregulation.
For independent marketers and retail outlets, the market has entered a new phase — one in which depot owners and major marketers are expected to play a more central role in price formation and supply distribution nationwide.
The post Dangote Refinery targets depot owners, major marketers in new marketing model appeared first on Vanguard News.
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