The Dangote Refinery has announced a reduction in petrol prices and will begin direct distribution to marketers starting Monday, a move expected to reshape Nigeria’s downstream oil sector.
Executives at the $20 billion Lagos-based plant told Bloomberg that the direct supply plan is designed to bypass intermediaries, streamline logistics, and ensure smoother nationwide availability of petrol. Industry analysts cited by Reuters suggest the price cut could ease inflationary pressure on consumers while also setting a competitive benchmark for other suppliers.
The 650,000-barrel-per-day refinery, Africa’s largest, has been positioned as a game-changer for Nigeria’s energy market, with stakeholders highlighting its potential to reduce the country’s reliance on imported refined products. Market observers noted in BusinessDay Nigeria that the direct distribution model could strengthen ties with independent marketers and disrupt long-established supply chains.
Government officials have welcomed the development, stating that improved distribution efficiency could help stabilize supply across the country. However, analysts also warned that persistent infrastructure gaps and foreign exchange constraints may limit the speed of impact.
