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Dangote refinery cuts minimum petrol purchase from 2 million to 250,000 L, introduces 10-day credit, free delivery

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… denies supply disruption to IPMAN

 

Oredola Adeola

Dangote Refinery, in December 2025, eased access to its Premium Motor Spirit (petrol) by reducing the minimum purchase requirement for qualified marketers, bulk consumers, and filling station operators from two million litres to 250,000 litres, while also introducing a 10-day credit facility backed by bank guarantees and offering free fuel delivery.

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The development was disclosed in a statement signed by Anthony Chiejina, Dangote Group Chief Branding and Communications Officer, who dismissed reports of any breakdown in supply arrangements between Dangote Refinery and Independent Petroleum Marketers Association of Nigeria (IPMAN).

Advisors Reports gathered that the minimum purchase threshold for marketers to qualify for the refinery’s free delivery scheme was initially reported at two million litres, later reduced to 500,000 litres per transaction, and has now been further adjusted downward to approximately 250,000 litres.

Dangote Refinery in the statement further disclosed that supply under the marketers’ arrangement commenced in October 2025 with an agreed offtake volume of 600 million litres of PMS, which was later increased to 900 million litres in November and subsequently expanded to 1.5 billion litres in December.

“In line with market growth and absorption capacity, volumes were scaled up accordingly,” the refinery stated, noting that since December 16, 2025, it has consistently loaded between 31 million and 48 million litres of PMS daily from its gantry, depending on market demand.

These figures, it added, are verifiable against depot and loading records maintained under routine regulatory oversight.

The refinery highlighted that it has introduced several measures and initiatives to enhance liquidity, support small and medium-sized operators, and reduce reliance on imported fuel.

It added that the expanded access framework has driven higher utilisation of locally refined PMS and contributed to more competitive retail pricing, with domestic products priced significantly lower than imported alternatives.

Dangote Refinery also dismissed claims that marketers withdrew due to pricing concerns, affirming that its ex-gantry prices remain competitive, market-responsive, and aligned with import parity indicators while meeting all regulatory and quality standards.

Addressing the surge in petrol imports recorded in November, the refinery explained that the increase coincided with import licensing decisions approved by the former leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which sanctioned volumes beyond prevailing domestic demand, stressing that this was unrelated to its operational capacity or supply commitments.

Dangote Refinery has therefore reaffirmed its commitment to reliable supply, and the orderly development of a competitive downstream petroleum market.

 It further pledged continued collaboration with regulators and industry stakeholders to support domestic refining, conserve foreign exchange, moderate prices, and strengthen long-term energy security.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has also distanced itself from reports suggesting that the surge in petrol imports in November 2025 was linked to a breakdown in supply arrangements between Dangote Refinery and petroleum marketers, describing such claims as inaccurate and misleading.

According to IPMAN, the report does not reflect the reality experienced by its members.

The association emphasised that the commencement of supply from Dangote Refinery has significantly improved product availability nationwide.

Abubakar Shettima,IPMAN National President, in a statement responding to the issue said,
“Our members fully support Dangote Refinery. Since supply began, marketers have consistently lifted products without any complaints.

“We oppose continued importation because Dangote Refinery has the capacity to meet the country’s entire PMS demand.”

Shettima further noted that members are satisfied with the reliability of supply and welcomed the refinery’s commitment to direct delivery to filling stations—a move he described as critical to stabilizing distribution and benefiting consumers.

He stressed that improved access to locally refined products has eased supply pressures and boosted confidence among independent marketers, reaffirming IPMAN’s commitment to domestic refining as a sustainable solution for Nigeria’s downstream petroleum sector.

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