Dangote Refinery Cuts Fuel Price, Entry Barrier, Becoming Nigeria’s Distribution Hub

Dangote Refinery has solidified its position as the central hub for fuel distribution in Nigeria after implementing strategic changes designed to improve affordability and access.

The refinery recently slashed the pump price of Premium Motor Spirit (PMS) to ₦699 per litre and dramatically reduced the minimum purchase requirement from 2 million litres to 250,000 litres.

These moves highlight Dangote Refinery’s dedication to stabilizing supply, promoting broader market participation, and bolstering national economic growth.

To further build confidence among marketers, the refinery has implemented a 10-day bank guarantee system to ensure reliable supply.

The market response has been significant, with the refinery now loading PMS onto over 1,000 trucks daily from its gantry—a strong indicator of trust in its operational efficiency and sector leadership.

Aliko Dangote, President of the Dangote Group, stated, “Our mission is to make energy affordable and accessible for all Nigerians. By cutting prices and lowering the purchase threshold, we are enabling marketers of all sizes to engage in the market, helping fuel reach every part of the country.”

This inclusive strategy empowers smaller operators, enhancing distribution networks and improving nationwide fuel availability.

By reducing barriers to entry, Dangote Refinery is stimulating competition and fostering a more stable and cost-effective fuel supply chain for Nigerians.

In a recent press engagement, Aliko Dangote reiterated his commitment to ensuring Nigerians reap the benefits of domestic refining.

He stressed that the company is working to ensure recent price reductions at the gantry are passed on to consumers at retail stations.

Dangote emphasized that the refinery is a legacy project, noting that if profit were the only motive, he could have invested $20 billion elsewhere.

This development follows an endorsement from the Independent Petroleum Marketers Association of Nigeria (IPMAN), which last week urged all its members nationwide to source PMS from Dangote Refinery, citing its competitive pricing.

IPMAN also welcomed a direct supply agreement with the refinery for its registered members.

Alhaji Abubakar Maigandi Shettima, IPMAN National President, highlighted that the association controls over 80% of the retail PMS market.

He assured that, with this partnership, there would be no gap or scarcity in PMS supply to Nigerians.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled:  Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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