Dangote Refinery to Begin Direct Petrol Supply August 15 as Marketers, Manufacturers Race for Access
Story: written by Okafor Joseph August 12,2925
Marketers and manufacturers across Nigeria are rushing to secure supply deals with Dangote Petroleum Refinery ahead of its highly anticipated direct petrol distribution rollout on August 15, 2025.
Industry sources say the engagement is aimed at locking in stable and competitive fuel prices, as Dangote prepares to bypass traditional depot owners and deliver directly to filling stations, industrial firms, and major consumers using a fleet of 4,000 CNG-powered trucks.
Abubakar Shettima, president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed that most of the association’s over 30,000 members have already registered with the refinery. “Prices might drop due to the absence of logistics costs. It’s a good development, and we are positive about its impact on Nigeria’s economy,” Shettima said.
Dangote’s direct-to-market model also includes free delivery and flexible credit terms for large orders, a move expected to significantly lower fuel costs for industrial users and underserved rural filling stations. The refinery’s existing distribution partners include MRS, Ardova, TotalEnergies, Hyde, Sobaz, Sunbeth Energies, and several others.
Major energy marketers, operating an estimated 5,000 trucks nationwide, are also in talks with the refinery to ensure nationwide distribution of petrol, diesel, and aviation fuel.
However, the plan poses a serious threat to petroleum depot owners and import-dependent marketers, many of whom risk losing market share due to Dangote’s competitive local pricing and expansive storage capacity. Industry analysts warn that depot operators who fail to pivot to other services may face closure.
Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), said the model will cut out middlemen, reduce union-related disruptions, and improve safety in fuel transportation. “This could significantly lower transportation risks, improve delivery speed, and reduce accident rates caused by safety breaches in tanker operations,” he added.
For industrial players, especially manufacturers battling rising diesel and petrol costs, the development could be transformative. “If Dangote can supply directly at lower prices, it will ease production costs and potentially boost Nigeria’s manufacturing output,” said energy analyst Chinedu Okonkwo.
The 650,000-barrel-per-day Dangote Refinery is set to alter Nigeria’s fuel supply chain in what many are calling the biggest shake-up in decades — with clear winners, losers, and a potential long-term impact on consumer fuel prices.
