Marketers Rush to Secure Direct Deals as Dangote Refinery Launches August 15 Fuel Supply
Petroleum marketers across Nigeria are intensifying negotiations with Dangote Petroleum Refinery Ltd. ahead of its planned August 15 rollout of direct petrol supply to the domestic market. Both major and independent marketers aim to secure stable, competitively priced fuel directly from the 650,000-barrel-per-day facility, Africa’s largest refinery. The move comes amid persistent fuel scarcity and foreign exchange volatility, which have inflated import costs and disrupted supply chains.
The Independent Petroleum Marketers Association of Nigeria (IPMAN), representing over 30,000 members and 150,000 filling stations, confirmed that most of its members have registered to benefit from Dangote’s direct distribution plan. Major players such as MRS, Ardova, TotalEnergies, and others are already within the refinery’s distribution network, while members of the Major Energies Marketers Association of Nigeria (MEMAN) are expected to deploy their fleets to ensure nationwide coverage. Dangote’s model will employ over 4,000 CNG-powered trucks to deliver petrol, diesel, and aviation fuel directly to stations and industrial consumers.
Industry stakeholders highlight that this approach bypasses traditional depot owners, reducing logistics costs and delivery delays, while offering free delivery and credit incentives for large-volume buyers. Manufacturers, represented by the Manufacturers’ Association of Nigeria (MAN), are also in talks to secure direct supply agreements, seeing it as an opportunity to reduce operational expenses in a deregulated market prone to import price shocks. Energy analysts predict that industrial users could save billions annually on diesel and petrol costs.
While the initiative promises benefits for independent marketers, rural filling stations, industrial users, and potentially consumers, it poses significant threats to depot operators and import-dependent marketers. Depot owners, who traditionally serve as storage and distribution hubs, risk losing relevance as Dangote’s in-house logistics system delivers directly to end-users. Importers face an uphill battle against locally refined fuel prices, which avoid forex-driven cost pressures.
Experts, including Muda Yusuf of the Centre for the Promotion of Private Enterprise, note that the integrated supply chain will improve safety, reduce risks from union-related disruptions, and lower transport premiums paid by consumers outside Lagos. However, the long-term impact on pump prices will depend on how cost savings flow through the supply chain. With direct access to the market, Dangote Refinery’s entry marks a potential seismic shift in Nigeria’s petroleum supply structure—benefiting some, while forcing others to adapt or exit.
Source: Business day