Dangote Refinery Alters Fuel Market In 11 States

Dangote Petroleum Refinery has disrupted fuel prices across 11 states as it begins direct petrol supply to independent marketers with free delivery.

The move, which took effect today, sets a new gantry price of N820 per litre and reduces pump prices in key states.

In Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, motorists will now pay N841 per litre, down from N865. In Abuja, Delta, Rivers, Edo, and Kwara, the price has been fixed at N851 per litre. The refinery said it plans to extend the supply arrangement to more states in the coming weeks.

The company explained that it has deployed thousands of CNG-powered trucks to strengthen logistics and cut costs across the distribution chain, despite recent increases in CNG prices. This rollout is part of its strategy to dominate the domestic fuel market and ease delivery challenges.

Ahead of the launch, the Independent Petroleum Marketers Association of Nigeria directed its members to register with Dangote Refinery in order to benefit from the new supply system. A memo from its leadership confirmed that marketers who had completed registration were cleared to begin payments and product lifting.

However, the development has sparked resistance from the Depot and Petroleum Products Marketers Association of Nigeria. The group criticised the refinery’s price slash, warning that while it may appear beneficial, it could destabilise the market and hurt businesses that already operate on thin margins.

DAPPMAN accused the refinery of offering cheaper rates to international buyers while charging local off-takers more, questioning claims that Nigerians were the priority. It also dismissed the notion of free delivery, pointing out that marketers are compelled to lift at least a quarter of their allocation directly from the refinery using Dangote-owned trucks at commercial rates.

The association stressed that Nigeria’s fuel stability does not rest on one refinery alone, but on a broad network of depots, importers, and distributors who have kept the system running through economic downturns, forex challenges, and security issues.

While acknowledging the refinery’s role in expanding supply, DAPPMAN cautioned against narratives that place sole credit on Dangote and ignore decades of investment by other stakeholders. It called for cooperation, regulatory compliance, and fair competition to build lasting confidence in the downstream sector.

The clash between the refinery and other marketers now sets the stage for a heated contest in Nigeria’s energy market, with consumers watching closely to see if the new prices will hold or trigger further volatility.