Dangote Refinery Resumes Petrol Sales at N774 Per Litre Under Revised Distribution Framework
The Dangote Refinery has officially resumed the sale of Premium Motor Spirit, commonly known as petrol, at a gantry price of N774 per litre. This development comes under a newly approved distribution structure that significantly alters access to refined petroleum products across Nigeria.
Revised Distribution Model Restricts Direct Access
The Nigerian Midstream and Downstream Petroleum Regulatory Authority has approved a revised distribution framework that marks a departure from the previous open-access model. Under the new arrangement, only approved major marketers and depot owners will be permitted to lift products directly from the refinery. This strategic shift effectively excludes independent petroleum marketers and smaller buyers from direct purchases, requiring them to source petrol through depot channels instead.
Industry analysts view this return to a controlled supply framework as a deliberate attempt to stabilize pricing, moderate market volatility, and strengthen confidence throughout Nigeria's downstream petroleum value chain. The structure mirrors the selective distribution model first introduced in October 2025, when only a limited number of large operators received direct access to refined products.
Authorized Marketers and Pricing Structure
Companies authorized under the updated framework include prominent industry players such as Mobil/11 Plc, Total, Matrix, Rainoil, Nipco, Northwest, Ardova, Bovas, Pivot, AA Rano, AYM Shafa, NNPC, and MRS. These entities must either operate functional depot infrastructure or qualify as recognized major marketers to receive clearance for direct purchases.
While the base price at the refinery gate remains pegged at N774 per litre, market trackers indicate that pump prices could vary across different regions. Early pricing signals suggest that retail prices may hover around N800 per litre in Lagos, while cities including Warri, Port Harcourt, and Abuja could see prices trending closer to N820 per litre as depot-level adjustments filter through the distribution network.
Industry Reactions and Strategic Implications
Stakeholders within Nigeria's oil and gas sector have largely welcomed the revised distribution model. Mazi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria, described the arrangement as a positive step toward market stability, emphasizing the critical importance of local petroleum product sourcing for long-term sustainability.
Industry sources reveal that the refinery had previously absorbed significant losses during periods of sharp price fluctuations and is now implementing this structured approach to build a more predictable ecosystem. The primary objectives include preventing depot business collapses while ensuring Nigerians benefit from improved supply coordination and reduced price shocks in the marketplace.
Regulatory Engagement and Market Evolution
In a related development, the Authority Chief Executive of the Nigerian Midstream and Downstream Petroleum Regulatory Authority, Engr. Saidu Mohammed, recently convened a high-level meeting with wholesale petroleum suppliers in Abuja. The engagement focused on supply sufficiency, pricing transparency, regulatory compliance, and overall market stability within Nigeria's fully deregulated petroleum environment.
With deregulation firmly established, Dangote Refinery's revised sales model signals a more structured approach to petroleum distribution nationwide. Depot owners and major marketers are now positioned to play central roles in shaping supply patterns and influencing retail prices across the country. This represents a significant market evolution where independent marketers and retail outlets will depend primarily on depot channels rather than direct refinery transactions for their petrol supplies.
Comparative Pricing Context
According to recent pricing data released by the Major Energies Marketers Association of Nigeria, imported premium motor spirit has emerged as cheaper than petrol produced by the Dangote Refinery. Figures published on February 7, 2026, indicate that the average landing cost of imported petrol stood at N721.80 per litre, significantly lower than the N799 per litre gantry price previously offered by the refinery. This represents a price difference of approximately N77.2 per litre, with imports maintaining a competitive advantage in the current market landscape.
As the distribution system undergoes this significant reset, industry attention remains focused on how quickly supply stabilizes and whether the new pricing framework delivers the predictability that both consumers and operators have long sought within Nigeria's petroleum sector.
