Dangote refinery accused of selling petrol cheaper abroad than to Nigerian marketers

Some Nigerian fuel importers claim that the Dangote refinery offers petrol to international traders at prices lower than those available to marketers within the country.

Members of the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria argued that the recently announced fuel price reductions appear timed to disrupt competition rather than benefit local dealers.

DAPPMAN Executive Secretary, Olufemi Adewole, explained that exporters buy petrol from the Dangote refinery and sell it internationally at a price N65 less per litre than the cost offered domestically. Adewole stated that these discrepancies have compelled members to sometimes import fuel from abroad despite efforts to purchase locally.

He stressed that attempts to obtain supplies directly from the Dangote refinery have been hindered by higher pricing and restrictive terms that make local procurement unprofitable. He added that it becomes more economical to source from international channels where Dangote’s products are resold at lower rates.

Adewole further emphasized that the refinery’s recent price cuts coincide with cargo arrivals by competing importers, imposing financial hardships on local fuel distributors. He also said that while the refinery touts discounted fuel for Nigerians, its pricing for local off-takers remains elevated, which contradicts public claims aimed at prioritizing Nigerian businesses.

In response, a spokesperson for the Dangote refinery dismissed the allegations and linked them to tensions stirred by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), who have accused the refinery of anti-union practices. The refinery spokesman also challenged the notion that DAPPMAN members source petrol from Lomé when they previously bought from Russia or Malta.

The refinery outlined plans to introduce compressed natural gas-powered trucks to facilitate its direct fuel delivery program starting Monday. This scheme is expected to reduce gantry prices to N820 per litre and lower pump prices in key states, aiming to ease fuel cost burdens nationwide.

However, DAPPMAN disputed the claim of free fuel delivery, noting that marketers must collect at least 25% of their allocations from the refinery’s jetty using Dangote-owned trucks at commercial rates. According to Adewole, this arrangement imposes extra financial and operational challenges on distributors, undercutting the message of market relief.

The Petroleum Products Retail Outlet Owners Association of Nigeria’s National President, Billy Gillis-Harry, endorsed DAPPMAN’s views, affirming the accuracy of the pricing concerns raised.

Adewole concluded that while the Dangote refinery is a valuable asset in Nigeria’s fuel supply ecosystem, it currently satisfies only 30 to 35 percent of national demand. The balance of petroleum products still depends on independent marketers operating under regulatory oversight.
How the new distribution model and pricing policies will affect market stability remains to be seen, but local marketers call for transparent pricing and fair terms to sustain domestic supply networks.