SEO Riders:
– Dangote Refinery oil marketers dispute 2025
– Nigeria fuel pricing and market control issues
– Impact of Dangote Refinery on Nigerian petroleum sector
he ongoing face-off between the Dangote Refinery and Nigerian oil marketers has intensified, highlighting deep-seated tensions over pricing, market control, and the future of Nigeria’s downstream petroleum sector.
At the heart of the dispute is Aliko Dangote’s $20 billion refinery, which, despite its capacity to produce 650,000 barrels per day, faces resistance from oil marketers who continue to rely heavily on imported fuel. Between March 1 and May 9, 2025, importers brought in 2.57 billion litres of petrol, costing approximately N2.42 trillion, even as the Dangote Refinery increased its output.
Dangote has accused certain international oil companies of withholding crude supplies and regulators of issuing import licenses for substandard petroleum products, undermining local refining efforts. He attributes the resistance to entrenched interests benefiting from decades of subsidized fuel importation.
In an effort to make fuel more affordable, the Dangote Refinery reduced its ex-depot price of petrol to N825 per litre and offered refunds to marketers who purchased at higher rates, absorbing a N16 billion loss. However, marketers argue that the refinery’s pricing is still higher than other suppliers, making it challenging for independent marketers to compete.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has called for engagement with Dangote to discuss pricing strategies, emphasizing the need for a level playing field. Similarly, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has urged the refinery to reconsider its business practices to foster fair competition.
As the dispute continues, concerns grow over potential monopolistic control by the Dangote Refinery, which could impact fuel prices and energy security in Nigeria. The situation underscores the need for collaborative efforts among stakeholders to ensure a balanced and sustainable petroleum sector that benefits all Nigerians.
