Fuel importers in Nigeria have accused the Dangote Refinery of selling petrol to international buyers at rates N65 per litre cheaper than what is offered to local marketers.
Both the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) confirmed the allegation, sparking fresh debate over Dangote’s pricing model and its impact on competition in Nigeria’s downstream oil sector.
Dangote’s New Price Slash
Last week, the refinery announced a price cut:
N841 per litre in Lagos and the South-West
N851 per litre in Abuja, Edo, and Kwara
The move coincided with the launch of Dangote’s direct fuel distribution scheme, which promises “free delivery” beginning Monday.
Importers Raise Alarm
DAPPMAN’s Executive Secretary, Olufemi Adewole, said members discovered Dangote’s petrol was cheaper abroad after purchasing from international traders in Lomé, Togo.
“Dangote is selling to international traders at N65 less than what he offers us in Nigeria,” Adewole said. “Some of our members even bought back the same product from those traders and re-imported it into Nigeria.”
He argued that the refinery’s “strategic price cuts” often coincided with the arrival of imported cargoes, creating shocks that destabilised the market and squeezed competitors out.
Adewole further demanded discounts to cover freight and other costs between Dangote’s jetty and local marketers’ depots, warning that traders would continue importing if the refinery’s domestic prices remained uncompetitive.
PETROAN and Other Importers Agree
Backing DAPPMAN’s claims, PETROAN President Billy Gillis-Harry admitted that Dangote’s petrol was indeed cheaper in Togo.
“DAPPMAN is correct. The truth will come out eventually,” he said.
Another major importer told reporters his company had boycotted Dangote’s supply because the margins were “unfavourable.”
Dangote Refutes Claims
A spokesperson for the refinery dismissed the allegations, mocking importers for suddenly sourcing from Lomé rather than their usual suppliers in Russia and Malta.
“We know who is behind these attacks,” the spokesman said, in a veiled reference to NUPENG, which recently accused the refinery of anti-union practices. “Our free delivery begins Monday.”
Dangote also announced plans to roll out compressed natural gas (CNG)-powered trucks as part of its logistics scheme to further cut fuel prices nationwide.
Market Concerns
Despite acknowledging the refinery’s significance, Adewole warned against portraying Dangote as Nigeria’s sole solution.
“Dangote contributes only 30–35% of national demand. The rest is supplied by importers like DAPPMAN members under strict regulation,” he said.
He also alleged that Dangote’s “free delivery” claims were misleading, since marketers were required to lift at least 25% of allocations using Dangote-owned trucks at commercial rates, adding hidden costs and logistical strain.
Industry observers warn that the feud—spanning price wars, union disputes, and competition fears—could unsettle Nigeria’s downstream oil sector at a time when the market is still adjusting to fuel subsidy removal and deregulation.