Dangote Petroleum Refinery has begun selling Premium Motor Spirit (PMS), commonly known as petrol, directly to independent oil marketers able to purchase a minimum of 250,000 liters, bypassing the traditional depot network.

Previously, the refinery relied on 20 depot owners to lift fuel from its gantry for nationwide distribution. The new strategy allows Dangote to deliver fuel closer to retail outlets, streamlining supply and improving accessibility.

In an interview with Vanguard, Jeremiah Olatide, CEO of Petroleumprice.ng, explained that the shift followed the collapse of the previous arrangement with depot owners.

“The refinery currently sells directly to independent marketers because the previous arrangement with depot owners has crashed,” Olatide said.

He added that the disagreement arose from pricing adjustments linked to the Eurobob benchmark, the international reference for gasoline. Depot owners requested further reductions in the Dangote gantry price after a drop in crude oil prices, but the adjustment did not meet their expectations. This led many marketers to turn to imports in November 2025, causing a surge in vessels at the ports.

“Dangote noticed this development and reduced the gantry price from N828 per litre to N699 per litre, a 129 percent cut—the largest price reduction in 2025,” Olatide noted.

The refinery’s direct sales model now positions independent marketers to purchase fuel without intermediaries, potentially reshaping Nigeria’s downstream petroleum sector.