Dangote Bypasses Depots, Sells Petrol Directly to Marketers

Dangote Petroleum Refinery has begun selling Premium Motor Spirit (PMS) directly to independent oil marketers capable of purchasing a minimum of 250,000 litres, marking a shift from its earlier reliance on selected depot owners for nationwide distribution.

Industry sources say the move allows the refinery to bypass traditional depot networks and move fuel closer to retail outlets. Previously, about 20 depot owners were responsible for lifting products from the refinery’s gantry.

Speaking on the development, the Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said the previous arrangement with depot owners collapsed after disagreements over pricing benchmarks tied to international crude oil prices. According to him, depot owners sought deeper price reductions following a drop in global crude prices, which led many marketers to turn to fuel imports in November 2025.

Olatide noted that the surge in imports prompted Dangote Refinery to respond by reducing its gantry price from N828 per litre to N699 per litre, a move he said represented the most significant price cut in the sector in 2025.