Dangote Refinery cuts authorised petrol marketers from 37 to 25, returns to EBOB-linked pricing

Dangote Petroleum Refinery has trimmed the list of marketers authorised to distribute its petrol from 37 to 25, removing 12 companies as it restructures domestic fuel sales. The refinery has also returned to an EBOB-linked pricing model, tying its selling price to a five-day average of a European gasoline benchmark.

The new consortium keeps major downstream operators, including the Nigerian National Petroleum Company Limited (NNPCL), NIPCO, MRS, Ardova, Rainoil and A.A. Rano.

The 25 marketers on the list

The selected companies are Techno Oil, Pivot, Soroman, NIPCO, MRS, Ardova, Fagbem, Masters, Bovas, Optima, Nepal Energies, Mainland, NNPC, Sobaz, Northwest, Danmarna, A.A. Rano, Rainoil, Pinnacle, AYM Shafa, Salbas, Heyden, Eterna, Total and Bongas.

The cut from 37 to 25 represents a nearly 32% contraction of the consortium. An industry source linked the restructuring to concerns over the pricing practices of some members of the previous consortium. The refinery has not publicly given reasons for excluding individual companies.

It is still unclear whether the new structure will change the volume of petrol allocated to each marketer or affect the refinery's wider distribution network.

Back to EBOB-linked pricing

The consortium review comes as Dangote Refinery returns to petrol pricing tied to EBOB, a European gasoline benchmark. Under the arrangement, prices are set using a five-day average of the benchmark, so movements in international petroleum markets feed into domestic selling prices.

The refinery first used the benchmark-linked system when it began direct petrol sales through consortium marketers. It later switched to fixed gantry pricing, which gave marketers a set loading price.

During that earlier switch, the refinery cut its petrol gantry price from ₦1,265 to ₦1,210 per litre, a drop of ₦55 or about 4.35%. That cut belonged to the previous pricing arrangement and should not be read as a fresh reduction after the latest restructuring.

With the return to EBOB-linked pricing, domestic petrol costs may respond faster to international gasoline prices. Marketers could see increases or reductions depending on global market conditions. The refinery has, however, kept fixed gantry pricing for automotive gas oil (AGO), known as diesel.

What it means for motorists

The immediate effect on pump prices remains uncertain. Refinery loading prices influence what motorists pay, but transport costs, distribution margins and competition between filling stations also shape the final price at the pump.

The restructuring signals a notable shift in Dangote Refinery's marketing strategy. Whether it brings cheaper petrol for Nigerians is not yet clear.

Depot price differences already exist in the market. An earlier review showed several marketers selling petrol below Dangote Refinery's ₦1,293 per litre depot price. Aiteo had the lowest price at ₦1,277 per litre, while NIPCO sold at ₦1,279 per litre.