The Dangote Petroleum Refinery has announced plans to release up to 600 million litres of petrol every month in a fresh effort to stabilise fuel supply across Nigeria and bring relief to motorists battling rising pump prices.
Confirming the development, the Independent Petroleum Marketers Association of Nigeria (IPMAN) said the refinery is finalising a new distribution framework involving 20 selected oil marketers who will serve as primary distributors nationwide.
According to Chinedu Ukadike, National Public Relations Officer of IPMAN, the refinery recently met with key stakeholders in the downstream sector including A.Y.M. Shafa, A. A. Rano, NNPCL Retail, and Salbas to streamline product allocation and reduce the influence of middlemen, often blamed for price distortions in the market.
“Dangote has agreed to sell directly to only 20 major marketers who will lift a minimum of two million litres each. This structure will ensure up to 600 million litres are released monthly into the system,” Ukadike explained.
He noted that the move is part of the refinery’s broader strategy to stabilise fuel availability, eliminate speculation, and restore efficiency across the supply chain.
“Once this arrangement takes effect, petrol availability will improve significantly, and retail prices are expected to start dropping,” he added.
IPMAN’s National Vice President, Hammed Fashola, confirmed that 20 marketers have indeed been shortlisted, though the final list is yet to be published.
Despite the refinery’s plan, several filling stations in the Federal Capital Territory have continued to raise pump prices amid limited supply.
Independent marketers attribute the sharp increase to supply bottlenecks, depot pricing inconsistencies, and delays in product loading from the refinery, which have pushed pump prices close to the ₦1,000 per litre mark in major cities.
Depot Owners Blamed for Price Surge
Reacting to the situation, IPMAN President Abubakar Shettima accused depot owners under the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of exploiting the temporary halt in Dangote’s petrol loading.
“These depot operators increased their ex-depot prices when they realised Dangote had paused loading for a few days,” Shettima said.
“Dangote is expected to resume loading soon, and once that happens, the prices will come down. This is a temporary situation.”
He added that while some Dangote-branded trucks are already distributing fuel, the volumes remain insufficient to meet nationwide demand, forcing many independent marketers to source products from depots at inflated rates.
Refinery Cuts Diesel Price by ₦50
In a related development, the Dangote Petroleum Refinery and Petrochemicals FZE has announced a ₦50 reduction in the ex-depot price of Automotive Gas Oil (diesel), bringing it down from ₦960 per litre to ₦910 per litre, effective October 15, 2025.
A circular from the refinery’s Group Commercial Operations Department, titled “AGO Gantry Price Reduction,” informed customers of the price review and thanked them for their continued support.
“Dear Valued Customer, please be informed that the gantry price for Automotive Gas Oil has been revised from ₦960/Litre to ₦910/Litre, effective October 15, 2025,” the notice read.
The price cut is expected to bring some relief to transporters, manufacturers, and other industrial users grappling with high operational costs.
What’s Next
Industry watchers say Dangote’s decision to expand supply and simplify its distribution network could stabilise Nigeria’s downstream sector, reduce fuel import dependence, and ease inflationary pressure caused by high transportation costs.
If sustained, the refinery’s monthly 600 million-litre supply plan could mark a turning point for the nation’s energy market, ensuring consistent availability of petrol and gradual restoration of market stability.
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