Dangote Refinery Halts Discounted Fuel Supply to Marketers, Launches Direct Distribution August 15
Writen by Okafor Joseph July 18, 2025
In a strategic shift ahead of its nationwide fuel distribution rollout, Dangote Refinery has suspended its discounted fuel supply to petroleum marketers. The decision signals the refinery’s transition towards a direct-to-customer distribution model, which is scheduled to begin on August 15, 2025.
A letter dated July 13, 2025, and signed by Fatima Dangote, Group Executive Director of Commercial Operations, informed all strategic partners of the development. The 650,000-barrel-per-day facility attributed the suspension of its discount scheme to widespread racketeering among marketers.
“The DPRP Management is suspending the discounted price offered to partners effective 13th July 2025 and is working towards restructuring the scheme,” the letter stated. Dangote Refinery encouraged marketers to consider other incentive and reward programs that may be offered going forward.
Retailers affected by this policy shift include MRS Oil, Ardova Plc, Hyde Energy, Heyden Petroleum, Optima Energy, Techno Oil, and several others. The move has sparked mixed reactions across the petroleum sector.
While the Independent Petroleum Marketers Association of Nigeria (IPMAN) has previously expressed interest in adopting Dangote’s fuel distribution model, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has voiced strong opposition. PETROAN cited concerns over potential monopoly and the threat it poses to smaller fuel businesses.
Despite the controversy, the ex-depot and retail prices of petrol have experienced a downward trend in recent weeks. Dangote Refinery reportedly slashed its ex-depot price to N820 per litre, while retail prices at NNPC, MRS, and other stations in Abuja now range from N885 to N915 per litre.
As of press time, Dangote Industries has yet to release an official public statement on the policy change. However, industry experts believe the move could reshape Nigeria’s downstream oil sector by increasing efficiency and reducing supply chain manipulation.Published by SpringnewsNG Media Limi
