Nigeria's fuel distribution landscape is undergoing a significant transformation following a major announcement from the Dangote Petroleum Refinery. The refinery has unveiled a comprehensive new supply package designed to provide substantial relief to petrol station owners and dealers across the country.
Credit Facility and Free Logistics to Ease Marketer Burdens
In a strategic move announced on Tuesday, December 30, 2025, the Dangote Group revealed a dual initiative aimed at tackling two of the biggest challenges facing independent fuel marketers: tight cash flow and high distribution costs.
The cornerstone of the new strategy is a 10-day credit facility backed by bank guarantees. This allows registered petrol dealers to access fuel without immediate upfront payment, providing crucial breathing room for working capital. To qualify, dealers must place a minimum order of 5,000 litres.
Complementing the credit window is a free direct delivery service to registered outlets. By eliminating transportation and logistics costs, the refinery directly attacks one of the most significant operational expenses for marketers.
Reduced Gantry Price Intensifies Market Competition
Beyond financial and logistical support, Dangote Refinery is also offering fuel at a sharply reduced price. The new gantry price has been set at ₦699 per litre, representing a substantial drop of ₦129 or approximately 15.6 percent from the previous rate of ₦828 per litre.
The combination of credit, free delivery, and a lower base price positions Dangote's products as highly competitive in the domestic market. The company stated that deliveries will begin shortly after petrol stations complete the registration process.
Analysts Predict Downstream Sector Realignment
Industry observers see this move as a clear sign of the evolving dynamics in Nigeria's liberalised fuel market. Adeola Yusuf, an energy analyst, noted that the initiative will ease general fuel distribution and offer relief from high logistic costs.
"We are seeing a systematic takeover of the downstream sector by the Dangote Refinery," Yusuf said. "Importers are now feeling the squeeze of the refinery's dominance."
The new package is expected to intensify the ongoing price war, putting pressure on fuel importers and smaller marketers who may struggle to match these integrated terms. The Dangote Group has urged all petrol station owners to register promptly to gain seamless access to the benefits.
This development follows the refinery's recent offline period for routine turnaround maintenance, which is expected to last into early 2026 and could potentially increase its capacity to 700,000 barrels per day. The refinery's growing influence was also highlighted by a reported year-on-year price reduction of ₦200.50 per litre in late 2024, underscoring its impact on Nigeria's fuel economics.
