Dangote Refinery disrupts petrol prices in 11 states

…Marketers warn of strain on families, businesses

By Adewale Sanyaolu

As the battle for market dominance gets fiercer, Dangote Petroleum Refinery has strategically fragmented petrol prices in 11 States, a move that would see its partner oil marketers benefit from the direct supply of petrol with free delivery which begins today across 11 select states.

To ensure a smooth take-off of the scheme, the refinery also announced a new gantry price of N820 per litre and retail pump prices.

In Lagos, Ogun, Oyo, Ondo,Osun and Ekiti, retail pump prices will drop from the current levels of N865 to N841 per litre, representing a N24 per litre cut.

In Abuja, Delta, Rivers, Edo and Kwara, retail pump prices have been pegged at N851 per litre. The Refinery added that it would subsequently expand its operations to other States.

On the other hand, other marketers warn that the shift could squeeze household incomes and pile fresh pressure on struggling businesses.

Nonetheless, Dangote, in a statement on Thursday, said it embarked on a large-scale CNG-powered truck roll-out to boost logistic strength and reduce costs across the distribution value chain of the domestic economy.

“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 said.

In preparation for today’s roll-out, the Independent Petroleum Marketers Association of Nigeria (IPMAN) has directed members who are yet to register with the Dangote Refinery and Petrochemicals Limited to immediately register with the refinery ahead of the commencement of direct fuel supply today.

IPMAN President, Mr. Abubakar Maigandi and the National Secretary, James Terlumun Tor, disclosed this in a memo to all zonal chairmen and depot chairmen.

The memo reads in part; “The National Executive Committee (NEC) of Independent Petroleum Marketers Association of Nigeria (IPMAN) under the Leadership Alh. Abubakar Maigandi Shettima as the National President and Hon. James Terlumun Tor as the National Secretary is pleased to inform our members who have renewed IPMAN membership registration in line with IPMAN 2009 Constitution as Amended that payment, loading and supply of Petroleum products at the Dangote Refinery has commenced.

“IPMAN Members who have already registered with Dangote Refinery and Petrochemicals Co. Ltd as was announced, are all directed to resume immediate Payment to Dangote Refinery and Petrochemicals Co Ltd.

“Be informed that on Monday, 15th September, 2025 the company will commence products loading and supply direct to buyers’ locations within the country. Interested Members who are yet to register with Dangote refinery and petrochemicals Co. Ltd are urged to go ahead with their Registrations.”

However, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has criticised Dangote Refinery’s price cuts, arguing that while the reductions may appear patriotic, their timing and ripple effects on the market could prove destabilising.

A statement by the Executive Secretary of DAPPMAN, Mr. Olufemi Adewole, titled “Clarifying the Role of Market Players in Nigeria’s Downstream Petroleum Sector”, said these reductions were often strategically timed when other importers had active cargoes at sea or in tank, creating price shocks that undermined competition and imposed financial strain on fellow market participants, including the refinery’s own domestic customers.

“Even more concerning is the refinery’s pattern of offering lower prices to international buyers while quoting higher rates to local off takers. This contradicts public-facing claims of prioritising Nigerians and places unnecessary burden on domestic businesses already operating under tight margins.”

DAPPMAN maintained that, the assertion that Nigeria’s downstream stability rests solely on one refinery is misleading and dismissive of the broader ecosystem.

“While we welcome the Dangote Refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 percent of national demand. The balance continues to be supplied by responsible petroleum product marketers, including DAPPMAN members, who import and distribute under strict regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).”

DAPPMAN insisted that the claim that Dangote Refinery offers “free delivery” is also misleading, stating that, in reality, marketers are required to lift at least 25 per cent of their allocations directly from the refinery gantry and must do so using only Dangote-owned trucks, paying commercial rates based on their destination.

The arrangement, it said, imposes additional logistical and financial burdens on marketers, limits operational flexibility and undermines the narrative of cost relief being provided to the local market.

“The Dangote Refinery is a valuable contributor, but it is not a messiah. Nigeria’s downstream sector is not driven by one facility alone. It is powered by an ecosystem of refiners, depots, marketers, transporters, and regulators, working in tandem to ensure nationwide access to fuel under often difficult circumstances. We caution against narratives that monopolize credit, shift blame, or undermine the confidence of investors, partners, and the public.

For decades, DAPPMAN marketers have ensured uninterrupted fuel access across the country, investing in depots, trucking fleets, retail networks, and logistics and doing so even through periods of forex pressure, subsidy transitions, insecurity, and economic downturns. These contributions deserve recognition, not erasure.”

As responsible and long-standing stakeholders in Nigeria’s downstream sector, we feel compelled to provide clarity on several inaccurate or misleading claims made in the public space — claims which, if left unchecked, could mislead the public and diminish the collective contributions of other players that have ensured national fuel availability for decades.

DAPPMAN reaffirms its commitment to the principles of competition, transparency, and collaboration in Nigeria’s downstream petroleum industry. We call on all parties, including the Dangote Refinery to engage constructively and communicate responsibly, avoiding one-sided accounts that can destabilise market confidence. The future of Nigeria’s energy sector lies not in divisive narratives, but in cooperation, regulatory compliance, and mutual respect.”