Dangote refinery opens petrol sales to all marketers, cuts price to N1,075 per litre

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Dangote Petroleum Refinery has opened the sale of Premium Motor Spirit (PMS), known as petrol, to all licensed marketers, ending its previous consortium marketing arrangement. The refinery also reduced its ex-gantry price of petrol to N1,075 per litre from N1,125.

End of consortium marketing arrangement

Petroleumprice.ng reports that the refinery said all qualified marketers can now purchase products directly from its loading gantry. This widens access to locally refined petrol and allows more participants to source fuel without going through intermediary arrangements.

Industry stakeholders said the policy shift is expected to encourage greater competition among marketers, depot operators and fuel importers. Buyers are increasingly expected to turn to the refinery for supplies.

Price reduction details

In a statement, Dangote said: "The latest N50 per litre reduction brings the cumulative decrease in the refinery's PMS ex depot price to N200 per litre since May 30, 2026, reducing the gantry price to N1,075. Over the same period, the refinery has reduced the ex-depot price of Automotive Gas Oil (AGO) by N300 per litre and Jet A1 aviation fuel by N520 per litre."

Dangote Refinery also aligned its coastal loading price with the ex-gantry price, eliminating the previous pricing difference between the two channels.

Impact on competition and imports

The move could reduce dependence on imported petrol by making locally refined products more accessible and competitively priced. Imported cargoes continue to face higher landing costs, making domestic supplies a more attractive option for marketers.

The development is also expected to put pressure on private depot owners, many of whom hold inventories purchased at higher prices. To remain competitive, depot operators may have to reduce their selling prices as marketers seek cheaper supplies directly from the refinery. Fuel importers could also face increased competition, with analysts saying they may be forced to lower prices to compete with locally refined petrol.

What this means for consumers and the naira

The opening of sales to all marketers, if sustained, could ultimately translate into lower pump prices for consumers. However, retail prices will continue to depend on logistics costs, exchange rate movements and international crude oil prices. A sustained reduction in petrol imports would ease pressure on the naira by reducing demand for foreign exchange used to pay for fuel cargoes.

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