Dangote Refinery Rolls Out New Supply Strategy to Stabilise Fuel Prices

By Deborah Oladapo 

Independent petroleum marketers have confirmed that the Dangote Petroleum Refinery has concluded plans to supply up to 600 million litres of petrol monthly as part of a coordinated effort to stabilise the Nigerian downstream market and curb the persistent surge in pump prices.

According to the Independent Petroleum Marketers Association of Nigeria (IPMAN), the refinery’s management met with key players in the sector earlier this week to finalise a new distribution framework that will streamline product allocation and eliminate bottlenecks linked to price distortions.

National Public Relations Officer of IPMAN, Chinedu Ukadike, told journalists that 20 major marketers have been shortlisted to serve as primary distributors to other dealers across the country.

“At the meeting, Dangote announced plans to sell to only 20 selected marketers who will serve as primary distributors. Each will lift at least two million litres per cycle, translating to about 600 million litres every month,” Ukadike said.
“This structure will stabilise supply, reduce speculation and restore efficiency in the delivery chain.”

The development comes amid widespread complaints about soaring fuel prices across major Nigerian cities. Checks in parts of Abuja and Lagos showed retail pump prices ranging between ₦940 and ₦955 per litre, with some independent stations selling as high as ₦1,000 per litre due to tight supply and depot pricing inconsistencies.

Confirming the arrangement, IPMAN Vice President, Hammed Fashola, said that although the final list of marketers has not been officially published, the new distribution model is expected to commence within days.

Depot operators under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) were blamed for speculative pricing following temporary loading delays at the Dangote facility. IPMAN President, Abubakar Shettima, said depot owners raised ex-depot prices when the refinery briefly halted fuel loading earlier in the week.

“These DAPPMAN people increased their prices the moment Dangote stopped loading. But Dangote is expected to resume full operations soon, and once that happens, prices will come down,” Shettima stated.

In a related development, the Dangote Petroleum Refinery and Petrochemicals FZE announced a ₦50 reduction in diesel (Automotive Gas Oil) prices, bringing the ex-depot rate down from ₦960 to ₦910 per litre, effective October 15, 2025.

A notice issued by the refinery’s Group Commercial Operations Department expressed appreciation to customers for their patronage, adding that the price review was part of efforts to provide relief to industrial users and transport operators.

Industry analysts say the refinery’s move to deepen domestic supply could ease pressure on importers and stabilise fuel distribution in the coming months. However, they cautioned that structural issues in transportation, forex availability, and depot infrastructure would need to be addressed to sustain price moderation.

The Dangote Refinery, commissioned in 2023 and regarded as Africa’s largest single-train refinery, has an installed capacity of 650,000 barrels per day, with the potential to meet Nigeria’s entire domestic fuel demand and export surplus to regional markets.