Dangote Petroleum Refinery has recorded an unprecedented surge in petrol evacuations, with daily gantry loading crossing the 2,000-truck mark, as fuel marketers increasingly abandon private depots in favour of the Lekki-based facility.
The shift follows aggressive pricing and commercial reforms by the refinery, which industry players say have fundamentally altered Nigeria’s downstream fuel economics.
Price cuts redraw supply routes
Market data show that Dangote Refinery’s decision to cut the ex-depot price of Premium Motor Spirit (PMS) to ₦699 per litre triggered an immediate migration of demand away from private depots. Many depot operators, burdened by higher landing costs and limited volumes, have struggled to match the new price benchmark.
Equally significant is the refinery’s reduction of minimum purchase volume from 2 million litres to 250,000 litres, a move that has opened the market to independent and regional marketers previously priced out of direct refinery access.
Industry analysts note that the reforms have compressed margins at private depots, forcing many marketers to lift directly from Dangote’s gantry to remain competitive at the pump.
Flexible payment terms boost marketer confidence
Beyond pricing, Dangote Refinery has introduced a 10-day bank guarantee framework, allowing marketers to load PMS while completing payment documentation. This has eased cashflow pressure and reduced turnaround time at the gantry.
The result is a sharp rise in truck traffic, with continuous loading now stretching deep into the night, according to logistics operators. The refinery has effectively become Nigeria’s busiest fuel distribution node, eclipsing traditional coastal depots.
“Our objective is to ensure affordability, accessibility, and supply stability,” said Aliko Dangote, President of Dangote Group. “Lower prices and flexible volumes allow marketers of all sizes to participate and serve Nigerians better.”
IPMAN endorsement accelerates depot abandonment
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has formally urged its members nationwide to source PMS from Dangote Refinery, citing its competitive pricing and reliable availability.
IPMAN National President, Abubakar Maigandi Shettima, said the association controls over 80 per cent of Nigeria’s retail fuel outlets, assuring consumers that supply gaps and scarcity risks have been eliminated. He added that free delivery is expected to commence in January 2026, further undercutting private depot costs.
Analysts say the combined impact of price leadership, inclusive access, and logistical efficiency has repositioned Dangote Refinery as the dominant force in the downstream sector. As private depots lose traffic, Nigeria’s fuel supply chain is rapidly consolidating around domestic refining a shift with long-term implications for pricing, competition, and energy security.