The distribution landscape for petrol in Nigeria is undergoing a significant transformation as the Dangote Refinery rolls out a revised marketing model. Under a new framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the refinery has resumed the sale of Premium Motor Spirit (PMS) by focusing its supply chain on major marketers and depot owners.
This strategic pivot moves away from the previous “open-access” arrangement where all classes of buyers, including smaller independent marketers, could purchase directly from the facility. The refinery is reverting to a structured distribution system reminiscent of the October 2025 framework. This model prioritizes high-volume off-takers who possess the infrastructure to manage large-scale storage and nationwide redistribution.
Among the entities cleared to lift products under this refined model are industry giants such as Total, Mobil/11 Plc, Matrix, Rainoil, Nipco, and NNPC, alongside others like Bovas, Ardova, and AA Rano. Industry insiders suggest this move is intended to stabilize the market by allowing those with significant storage capacity to moderate supply flows, which in turn helps in managing price volatility across the country.
While the distribution channel has tightened, the pricing at the refinery gates remains steady. Olajide Jeremiah, the CEO of Petroleumprice.ng, noted that the gantry price is holding at N774 per litre. However, he clarified that the days of independent marketers lifting small volumes directly from the refinery are over. Instead, these smaller players, including members of IPMAN and PETROAN, will now need to source their stock from the major depots.
This shift essentially designates depot owners as the primary middle-men. These entities will receive products through coastal vessels or gantry loading, store them in their facilities, and subsequently set the ex-depot prices for retail outlets. Early market signals monitored by Reports suggest that as these products move from depots to pumps, consumers might see benchmark prices around N800 per litre in Lagos, while regions like Abuja, Port Harcourt, and Warri could see prices trending near N820 per litre.
The reaction from industry advocates has been largely constructive. Mazi Colman Obasi, National President of the Oil and Gas Services Providers Association of Nigeria (OGSPAN), characterized the new arrangement as a positive step toward localizing the energy supply chain. He expressed hope that while deregulation continues to drive the market, both the government and private operators will double down on sourcing products locally to ensure long-term energy security.
Beyond mere logistics, there is a deeper economic strategy at play. Sources indicate that the refinery is keen on ensuring the survival of the downstream ecosystem. By channeling sales through depots, the refinery avoids undermining the business of existing storage facility owners. It is a balancing act designed to prevent the collapse of the depot sub-sector while attempting to offer Nigerians a more predictable and sustainable pricing structure.
To ensure this new phase of deregulation remains transparent, the NMDPRA recently held high-level talks in Abuja. The Authority’s Chief Executive, Engr. Saidu Mohammed, met with wholesale suppliers to discuss supply sufficiency and market stability. The engagement highlighted a collective commitment to maintaining industry best practices and ensuring that the shift in distribution does not lead to artificial scarcity or unfair pricing practices.
As the market settles into this new rhythm, the role of major marketers has become more central than ever. For the average retail outlet, the focus now shifts to the depots, which will serve as the heartbeat of petrol distribution in Nigeria for the foreseeable future.
