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Home Business

Dangote Refinery lowers minimum petrol order to 250,000 litres

Ada Okafor by Ada Okafor
December 22, 2025
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Dangote Petroleum Refinery has reduced the minimum purchase volume for petrol from 500,000 litres to 250,000 litres, a move expected to broaden access for small and mid-sized fuel marketers and deepen competition in Nigeria’s downstream oil sector.

The refinery said the adjustment allows more marketers to buy directly from its facility, while the gantry price remains unchanged at N699 per litre. The current price reflects a recent N129 reduction from N828 per litre implemented earlier in December 2025.

The announcement was made via the company’s official X account over the weekend. According to the refinery, both existing and new customers purchasing the reduced minimum volume are now eligible for a 10-day credit facility, provided the transaction is backed by a bank guarantee.

In addition, Dangote Refinery confirmed that volume-based discounts will continue to apply for buyers lifting larger quantities, while free delivery to petrol stations is expected to commence in the near term.

Industry analysts say the reduction in minimum order volume marks a significant shift in distribution strategy, making it easier for independent and regional marketers to participate without meeting the previous 500,000-litre threshold.

“This is a deliberate attempt to democratise access to locally refined petrol,” said Mr. Olatide Jeremiah, an energy analyst based in Lagos. “By lowering entry barriers, Dangote Refinery is strengthening competition at the wholesale level, which should translate to more price moderation at retail outlets.”

Observers also note that the move signals a gradual departure from the former coordinated bulk-purchasing or marketers’ consortium model, which had dominated petrol lifting arrangements in the past.

Instead, the refinery appears to be pushing toward a more decentralised, market-driven distribution framework.

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