…Dangote refinery has returned to a controlled distribution system
LAGOS, NIGERIA- The iNews Times | Dangote Refinery has resumed the sale of Premium Motor Spirit (PMS), commonly known as petrol, to selected major marketers and depot owners under a revised distribution model approved by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
The decision marks a departure from the previous open-market structure that allowed sales to all categories of buyers, including independent petroleum marketers.
Under the new framework, only approved major marketers and depot operators including Mobil/11 Plc, Total, Matrix, Rainoil, Nipco, Northwest, Ardova, Bovas, Pivot, AA Rano, AYM Shafa, NNPC and MRS are permitted to lift products directly from Dangote refinery.
Industry sources disclosed that Dangote refinery has returned to a controlled distribution system similar to the model introduced in October 2025, when direct access was limited to a selected group of large marketers.
A senior operator who confirmed the development explained that the strategy is intended to help depot owners and major marketers better regulate supply volumes and exert greater influence over market pricing. Independent marketers, including members of IPMAN and PETROAN, will now procure products through depots rather than directly from the refinery.
The Chief Executive Officer of Petroleumprice.ng, Olajide Jeremiah, noted that Dangote refinery’s gantry price remains at N774 per litre.
He stated that although the price remains unchanged, independent marketers who typically purchase smaller volumes will no longer buy directly from the refinery. Only depot operators with functional storage infrastructure and recognised major marketers that meet defined approval requirements will be eligible to lift products.
According to him, supply channels will include coastal vessel deliveries, ship-based transactions and gantry loading for authorised buyers. Depot owners will subsequently distribute the products and determine ex-depot prices.
Early market indicators suggest that N800 per litre may become the new benchmark price in Lagos, while Warri, Port Harcourt and Abuja are trending around N820 per litre following recent depot-level adjustments.
The National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, described the arrangement as a positive step, expressing hope that stakeholders would continue to promote local sourcing of petroleum products within the deregulated market framework.
Another industry source said the objective is to reduce volatility and rebuild confidence across the downstream value chain, noting that the refinery had reportedly absorbed losses during previous price swings.
“The goal is to stabilise the ecosystem. Dangote does not want depot businesses to fail, and it also seeks to ensure Nigerians benefit from more predictable pricing. It is about achieving balance,” the source said.
Under the revised model, retail marketers will now obtain products indirectly through depots instead of purchasing directly from the refinery.
Meanwhile, the Authority Chief Executive of NMDPRA, Engr. Saidu Mohammed, convened a high-level meeting with wholesale petroleum suppliers at the regulator’s headquarters in Abuja.
The session brought together major downstream stakeholders to review supply adequacy, pricing transparency, market stability and regulatory compliance within Nigeria’s evolving petroleum landscape.
Wholesale suppliers commended the Authority for maintaining open engagement and reaffirmed their commitment to compliance and industry best practices.
The refinery’s adjusted sales model, alongside the regulator’s intensified stakeholder consultations, signals a coordinated effort to stabilise Nigeria’s downstream petroleum market under full deregulation.
For independent marketers and retail operators, the sector is entering a new phase in which depot owners and major marketers are expected to assume a more prominent role in supply management and price determination nationwide.
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