In a significant move to reshape Nigeria's fuel supply landscape, the Dangote Petroleum Refinery has announced the resumption of its free direct delivery of Premium Motor Spirit (PMS), commonly known as petrol, to retail outlets across the country. The refinery is offering the product at a new gantry price of ₦699 per litre, a rate that undercuts prices at most other depots.
New Pricing and Free Logistics to Stabilise Market
This initiative, announced on 21 December 2025, represents a renewed and aggressive push by Africa's largest single-train refinery to deepen its footprint in the downstream sector. By combining a competitive price point with free delivery directly to registered filling stations, the company aims to tackle two major pain points for marketers: high logistics costs and supply inconsistency.
Energy policy analyst Adeola Yusuf, in a discussion with Legit.ng, highlighted the strategic nature of the move. "There is a fierce battle in the downstream sector and Dangote seems to have the upper hand through his petrol price slashes," Yusuf stated, noting the interplay of market dominance and deregulation.
Registration and Incentives for Marketers
To benefit from the programme, petrol station owners and dealers are required to register their outlets with the refinery. This process is designed to create a structured and transparent supply framework, enabling efficient delivery planning.
Beyond the attractive price and free delivery, Dangote Refinery is rolling out additional incentives to support retailers:
- A 10-day credit facility, backed by a bank guarantee, to ease cash flow constraints for bulk purchases.
- A minimum order requirement of 500,000 litres, targeting medium to large-scale operators to ensure steady retail volumes.
This direct supply model is expected to reduce dependence on multiple intermediaries, shortening delivery timelines and limiting disruptions common in third-party haulage arrangements.
Industry Backing and Market Implications
The refinery's new pricing framework has received strong backing from the Independent Petroleum Marketers Association of Nigeria (IPMAN). The association has reached an agreement for direct supply to its members, believing the move will stabilise supply, curb scarcity fears, and ease long-term pressure on consumers.
Analysts see this development as a potential game-changer for Nigeria's downstream petroleum sector. By addressing logistics costs and offering credit, Dangote Refinery is directly confronting historical drivers of price volatility and supply gaps. This is expected to intensify competition, putting pressure on import-dependent operators and potentially leading to more transparent pricing across the board.
The resumption of this programme reinforces the refinery's pivotal role in reducing Nigeria's reliance on imported petroleum products while strengthening local distribution networks. With its combined offer of competitive pricing, free delivery, and financial incentives, the Dangote Refinery is poised to significantly reshape fuel distribution dynamics, offering a measure of relief to retailers in a challenging economic environment.
