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Dangote Refinery Licensed To Refine Not Distribute 

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Dangote Refinery Licensed To Refine Not Distribute 

Oil marketers, represented by the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), have urged the Federal Government and industry regulators, including the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), to intervene in Dangote Refinery’s expansion plans.

They argue that the refinery’s decision to start freely distributing petrol and diesel to retail outlets and major consumers nationwide by August could lead to job losses and create a monopoly.

On June 15, 2025, the $20 billion Lagos-based refinery announced its intention to begin fuel distribution across the country. With a production capacity of 650,000 barrels per day, Dangote Refinery has acquired 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to support the initiative, scheduled to launch on August 15, 2025.

The refinery introduced a credit scheme for bulk fuel buyers. Those purchasing a minimum of 500,000 litres will be eligible for an extra 500,000 litres on credit for two weeks, backed by a bank guarantee.

However, petrol marketers and truck owners have strongly opposed this move, fearing that it will negatively impact depot owners, truck operators, and retail outlets, particularly those with existing agreements for direct fuel deliveries to large corporations and multinational companies.

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