Dangote Petroleum Refinery has begun the sale of Premium Motor Spirit, popularly known as petrol, directly to independent oil marketers that can purchase a minimum volume of 250,000 litres.

Before the latest development, the refinery relied largely on about 20 depot owners who lifted petrol from its gantry and handled nationwide distribution of the product.

According to a report by Vanguard, the shift in strategy enables the Dangote refinery to bypass the traditional depot system and move fuel closer to retail outlets across the country.

Speaking in an interview with Vanguard, the Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, explained that the refinery opted for direct sales to independent marketers after its arrangement with depot owners collapsed.

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

He disclosed that the pricing framework under the former arrangement was tied to international benchmarks, particularly the Eurobob pricing model.

“It was agreed that the process would be determined by Eurobob, which primarily refers to the benchmark price for European gasoline (petrol), that is the international benchmark. That for every benchmark, the price would be discussed and agreed to be adjusted,” he stated.

Olatide added that both parties had initially agreed on specific pricing terms as published by the Dangote refinery.

“They agreed on N806 coastal rate and N828 gantry price as published by Dangote refinery,” he said.

He noted that challenges began after global oil prices declined, prompting private depot owners to demand a downward review of the refinery’s gantry price.

“After the first month, the international crude oil benchmark dropped, and the private depot owners requested a reduction in the Dangote gantry price,” Olatide explained.

Although the refinery adjusted the price, Olatide said the reduction did not align with the expectations of the depot owners when compared with international market movements.

“The reduction was effected but not what they expected in comparison with international prices,” he said.

According to him, dissatisfaction with the revised pricing led marketers to resume fuel importation towards the end of the year.

“It was this difference that made the marketers turn to imports in the month of November 2025,” Olatide said.

He further revealed that the volume of imported fuel increased significantly during the period, resulting in congestion at Nigerian ports.

“Importation surged in November, and there were a large number of vessels at berth,” he added.

Olatide said the refinery responded to the surge in imports by implementing a sharp price reduction in order to remain competitive.

“So, when Dangote noticed the new development, he slashed the price from N828 per litre to N699 per litre, a 129 per cent reduction and the highest in 2025,” he stated.