The Dangote Petroleum Refinery has initiated its first major domestic supply operation for Premium Motor Spirit (PMS), popularly known as petrol, by selecting 20 major depot operators for a pilot distribution program this October. The move is a significant step toward stabilizing Nigeria’s historically volatile fuel market.
The refinery announced a target of distributing 600 million litres of petrol through the selected partners as part of a structured test model ahead of a full commercial rollout. Industry observers are hailing the transparent and controlled approach as a potential game-changer for the nation’s downstream sector.
Under the pilot plan, each of the 20 selected depot operators is expected to lift approximately 30 million litres of petrol between October 10 and October 31, 2025.
Loading will occur exclusively at the refinery’s truck gantry and marine terminals. This strict monitoring is designed to eliminate multiple handling layers and ensure a direct, verifiable supply chain from the refinery gate to the depot.
Sources within the industry disclosed that the refinery has pegged its gantry price for the pilot phase at ₦877 per litre. This figure is said to reflect the logistics and distribution costs under the refinery’s new controlled framework. Only accredited partners are participating in this initial test phase.
The companies chosen to participate in this crucial pilot programme include:
NNPCL Retail
A.Y.M. Shafa
A.A. Rano
Salbas Energy
Northwest Petroleum
Rainoil
Ardova
Optima Energy
Masters Energy
Bovas Group
Dan Marna Petroleum
NIPCO Plc
Pinnacle Oil and Gas
Heyden Petroleum
Sunbeth Global Concepts
Mainland Oil and Gas
NEPAL Oil and Gas Services
MRS Oil Nigeria Plc
Conoil Plc
TotalEnergies Marketing Nigeria Plc
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has confirmed the meetings held with the refinery to finalize the distribution structure.
Chinedu Ukadike, IPMAN’s national public relations officer, stated that the project aims to release up to 600 million litres of petrol monthly to help stabilize domestic supply and curb the continuous rise in pump prices.
“At the meeting, Dangote announced that the 20 selected marketers will act as primary distributors to other dealers. The structure is specifically designed to cut off middlemen and reduce speculation,” Ukadike noted, emphasizing the drive for a more streamlined market.
An industry executive close to the development added that the pilot phase will rigorously assess logistics performance, pricing efficiency, and delivery timelines before the massive undertaking of a nationwide expansion.
“Dangote wants to test the network through controlled partnerships before scaling operations. Each depot operator will lift under strict compliance,” the source explained.
The success of this pilot is widely seen as critical for significantly increasing local refining capacity and providing a stable, reliable fuel source for the Nigerian economy.
