Dangote Refinery Faces Allegations of Selling Petrol Cheaper Abroad Than in Nigeria

Fresh controversy is brewing in Nigeria’s downstream oil sector as some fuel importers and marketers accuse the Dangote Refinery of selling petrol at cheaper rates to international buyers than to local marketers.

According to Sunday PUNCH, the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) both confirmed that the refinery sells a litre of petrol to international traders at about ₦65 less than what Nigerian marketers are charged.

Price Cuts and Alleged Market Manipulation

The refinery recently announced plans to slash its petrol prices from ₦865 per litre to ₦841 in Lagos and the South-West, and ₦851 in Abuja, Edo, and Kwara, alongside a new direct fuel distribution scheme.

But marketers see these price cuts differently. DAPPMAN’s Executive Secretary, Olufemi Adewole, told Sunday PUNCH that the timing of these reductions often coincides with the arrival of importers’ fuel cargoes, creating market disruptions. He argued this strategy “stifles competition” and puts local distributors under financial pressure.

Adewole added that some members had successfully purchased Dangote-sourced fuel from international traders in Lomé, Togo, at lower prices than the refinery offered domestically.

Calls for Fairer Pricing

DAPPMAN insists that Dangote should offer discounts to local marketers to cover freight and logistical costs, ensuring a level playing field. “People will continue to import if the price is cheaper elsewhere,” Adewole warned.

National President, Billy Gillis-Harry, backed DAPPMAN’s position, stressing that the claims of cheaper fuel abroad are true.

Response

A spokesman for the refinery dismissed the allegations, describing them as distractions, and hinted that marketers might be behind recent tensions with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG).

also defended its logistics scheme, announcing the rollout of Compressed Natural Gas (CNG)-powered trucks to deliver fuel nationwide. The company said this move would push petrol gantry prices down further to ₦820 per litre, leading to cheaper pump prices in many states.

The Bigger Picture

While DAPPMAN acknowledges the refinery’s importance, it warns against over-reliance on a single supplier. Adewole noted that Dangote currently meets only 30–35% of national fuel demand, with the rest supplied by importers under regulatory oversight.

As the battle for market dominance intensifies, Nigerians will be watching closely to see if Dangote’s pricing model truly delivers long-term relief at the pump—or simply reshapes competition in the downstream sector.

Source: Sunday PUNCH exclusive interviews and reports.