The fuel supply agreement between Dangote Petroleum Refinery and 20 major marketers, which aimed to offtake 600 million litres of petrol monthly, has broken down over pricing disputes, The PUNCH has learned.
The collapse is linked to the surge in petrol imports in November 2025, when total imports jumped to 1.563 billion litres, according to the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Under the October 2025 pilot arrangement, 20 depot owners were to act as primary distributors, each lifting roughly 30 million litres from Dangote Refinery. Independent marketers were restricted to buying 250,000 litres or less. The plan was intended to stabilise domestic supply and curb escalating pump prices.
However, sources told The PUNCH that the deal fell apart in November when international petrol prices dropped below Dangote’s selling price, leading marketers to seek cheaper imports. Though Dangote later reduced its gantry price to N699 per litre, the adjustment came too late for those who had bought at N828 per litre, leaving many with losses.
The dispute also triggered a public clash between Dangote and former NMDPRA boss Farouk Ahmed over import licensing, culminating in Ahmed’s resignation in December 2025.
Following the collapse, Dangote has liberalised sales, allowing marketers to buy as little as 250,000 litres, effectively ending the exclusivity arrangement. The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed the open-market approach, citing market strategy and competition as key reasons.
Recent data shows that the spot price of imported petrol has dropped to about N696 per litre at the Apapa jetty, slightly below Dangote’s gantry price, creating opportunities for competitive pricing in the downstream market.
