Fuel marketers have accused the Dangote Refinery of offering petrol to international traders at lower prices than what is charged locally, sparking fresh tension in Nigeria’s oil sector.
The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) claim that petrol bought through traders in Lome, Togo, is about N65 per litre cheaper than what Nigerian off-takers pay at home.
DAPPMAN’s Executive Secretary, Olufemi Adewole, said some marketers have even resorted to purchasing Dangote-sourced fuel abroad because it was more affordable than buying directly from the refinery in Lagos. He argued that without discounts to cushion freight and distribution costs, importers cannot remain competitive.
The refinery, however, dismissed the allegations, hinting that marketers may be behind ongoing disputes with the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG). Dangote also maintained that its new direct distribution plan, set to start Monday, would reduce prices to N820 per litre and expand delivery across key states.
Despite this, marketers insist that the refinery’s “free delivery” claims are misleading, as allocations must still be lifted using Dangote-owned trucks at commercial rates, adding to operational costs.
PETROAN’s President, Billy Gillis-Harry, supported DAPPMAN’s concerns, warning that such pricing practices could unsettle the market.
Adewole further alleged that Dangote’s price cuts are strategically timed to undercut importers whenever their cargoes arrive, a move he said undermines competition.
While recognising the refinery’s role, he emphasised that it only supplies about a third of national demand, with the rest still covered by importers and other marketers.