Dangote Refinery Resumes Petrol Sales Under Revised Distribution Framework

Dangote Refinery Resumes Petrol Sales Under Revised Distribution Framework

Dangote Petroleum Refinery has restarted the sale of Premium Motor Spirit (PMS), commonly known as petrol, to major marketers and approved depot owners under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), energy sector sources say. The refinery’s return to selling petrol follows a controlled distribution model designed

Dangote Petroleum Refinery has restarted the sale of Premium Motor Spirit (PMS), commonly known as petrol, to major marketers and approved depot owners under a revised distribution framework endorsed by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), energy sector sources say.

The refinery’s return to selling petrol follows a controlled distribution model designed to streamline access to refined fuel products and improve supply stability across the country. Under the arrangement, only selected major marketers and depot owners who meet regulatory and operational criteria are eligible to lift petrol directly from the refinery’s gantry. Firms included in the initial list are Mobil/11 Plc, Total, Matrix, Rainoil, Nipco, Northwest, Ardova, Bovas, Pivot, AARano, AYMShafa, NNPC and MRS, industry insiders say.

An industry source familiar with the development said the move marks a shift away from previous arrangements that allowed petrol sales to all classes of buyers including smaller independent marketers. The new structure aims to moderate supply flows control price formation and strengthen market predictability by concentrating product lifting with operators that possess larger storage and distribution capabilities.

Under the revised framework the refinery retains its gantry price at ₦774 per litre, according to petroleum price watchers, leaving retailers and depot managers to adjust downstream pricing based on logistics and market conditions.

While independent petroleum marketers such as members of the Independent Petroleum Marketers Association of Nigeria and the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) will not receive direct sales from the refinery, they can source petrol from the authorised depots that now serve as principal distribution hubs.

Industry analysts say the new model has been adopted to build stronger coordination between the refinery and downstream operators, reduce price volatility and support transparent pricing signals in a fully deregulated downstream market. The move has been welcomed by some stakeholders as a step towards enhancing domestic fuel distribution while addressing past bottlenecks that affected consistent supply.

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