Oil marketers in Nigeria are turning away from Dangote Petroleum Refinery, opting for private depots due to a significant price difference. With private depots selling at lower rates, marketers are sourcing cheaper fuel elsewhere, shifting the balance of power in Nigeria’s fuel market.
Private Depots Undercut Dangote’s Prices
As of Friday, March 8, 2025, private depot prices were cheaper than Dangote’s petrol price of ₦834 per litre. The latest figures from Daily Oil and Gas Intelligence Reports show:
Premium Motor Spirit (PMS) Prices
- Dangote Depot: ₦834 per litre
- Private Depots on Friday:
- NIPCO: ₦835 per litre
- ARDOVA: ₦833 per litre
- AITEO: ₦832 per litre
- MRS Tincan Depot: ₦830 per litre
Automotive Gas Oil (AGO) Prices
- Dangote Depot: ₦1,030 per litre
- Private Depots on Friday:
- AITEO: ₦1,015 per litre
- African Terminal: ₦1,012 per litre
- Menj Oil: ₦1,012 per litre
These figures confirm that marketers can buy fuel at private depots for up to ₦120 less per litre than Dangote’s price.
MEMAN Confirms Lower Landing Cost for Imported Petrol
Further compounding the issue is that the Major Energy Marketers Association of Nigeria (MEMAN) has revealed that the landing cost of imported petrol is now ₦774 per litre, making imports even more affordable than Dangote’s ₦950 per litre.
“Marketers are simply going for the cheaper option,” said an industry expert. “With private depots selling below ₦835 and imported fuel landing at ₦774 per litre, sticking with Dangote means unnecessary losses.”
Dangote’s Response and Marketers’ Complaints
Despite these price differences, Dangote Refinery has defended its pricing strategy, arguing that it is absorbing part of the cost fluctuations in the international market.
Anthony Chiejina, Dangote’s Head of Branding and Communications, stated:
“We adjusted our price from ₦899.50 to ₦950 per litre, but this is still below the actual rise in global crude costs.”
However, marketers are not convinced. Many complain that Dangote’s pricing strategy does not align with global trends and that the refinery’s pricing delays leave them with unsold fuel stocks at a loss.
“We can’t keep buying at a higher rate when private depots and imports are cheaper,” said Tunde Ojo, an independent marketer.
To mitigate backlash, Dangote offered a refund of ₦65 per litre for petrol bought before its recent price reduction. However, marketers argue this is just a temporary fix and that they need consistent pricing that reflects market trends.
NNPCL Supply Issues Worsen Dangote’s Challenges
Another major challenge facing Dangote Refinery is supply constraints. The refinery depends on crude oil from the Nigerian National Petroleum Company Limited (NNPCL), but sources say that NNPCL has not been supplying enough crude.
The reason? NNPCL has already sold most of its crude in advance until 2030 under long-term oil-backed loan deals. This forces Dangote to look for alternative crude sources, increasing its costs and limiting its ability to lower prices.
What This Means for Nigeria’s Fuel Market
The battle between Dangote Refinery and independent marketers is creating uncertainty in Nigeria’s fuel market. The refinery was supposed to make Nigeria self-sufficient in petrol production, reducing the need for imports.
However, if private depots and imports continue offering cheaper alternatives, Nigeria could revert to heavy dependence on imported fuel, undermining the purpose of local refining investments.
Meanwhile, Dangote has shifted focus to exporting diesel and jet fuel, raising concerns that its priority may no longer be the local Nigerian market.
For now, the standoff continues, with both Dangote and marketers unwilling to compromise. As long as private depots offer cheaper fuel, marketers will keep buying from them, further challenging Dangote’s dominance.