By Our Reporter
Dangote Refinery has unveiled plans to restrict direct sales of petroleum products to independent marketers, a move that could set a new benchmark for petrol prices across the country.
The adjustment in its distribution model is already pointing to N800 per litre as a likely reference price in Lagos, with other major cities trending higher.
The Chief Executive Officer of Petroleumprice.ng, Olajide Jeremiah, said that the Dangote Refinery’s gantry price remains unchanged at N774 per litre, despite a significant shift in its sales model. He said the refinery will no longer sell directly to independent petroleum marketers who purchase in smaller volumes.
“While the gantry price remains at N774 per litre, Dangote Refinery will no longer sell directly to independent petroleum marketers who typically purchase in smaller volumes,” Jeremiah said.
“Instead, only depot owners with established storage facilities, approved major marketers will be eligible to lift products. Approval now follows defined procedures. Buyers must operate functional depot infrastructure or qualify as recognised major marketers before receiving clearance.”
According to him, the refinery will supply products through coastal vessel shipments, ship-based transactions, and gantry loading strictly for authorised buyers. Depot owners will then distribute products from their facilities and determine ex-depot prices, effectively placing them at the centre of supply and pricing dynamics.
Jeremiah added that early pricing signals indicate N800 per litre could become the new benchmark in Lagos, while Warri, Port Harcourt, and Abuja are trending around N820 per litre following recent depot-level adjustments.
Reacting to the development, the National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), Mazi Colman Obasi, reportedly described the move as a positive development.
He was quoted to have said: “This is a good arrangement and we hope that while deregulation remains in place, the government and operators will work toward sourcing more petroleum products locally from the refinery.”
Meanwhile, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority hosted wholesale suppliers in Abuja to deliberate on supply sufficiency, pricing transparency, and regulatory compliance. The engagement underscores ongoing efforts to strengthen stability and sustainability in Nigeria’s fully deregulated downstream market, where depot owners and major marketers are now expected to play a more central role in product distribution nationwide.
With additional reports from the Vanguard