Starting today, September 15, 2025, the Dangote Refinery will begin direct petrol supply to 11 states across Nigeria. Petrol will be priced at an ex-gantry rate of ₦820 ($0.546) per litre, with free delivery to registered fuel stations. This initiative aims to transform Nigeria’s downstream petroleum sector and is expected to expand nationwide using a fleet of 4,000 compressed natural gas trucks.
The initial supply will originate from the Lagos mega-refinery, with recommended pump prices set at ₦841 ($0.56) per litre for Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, and ₦851 ($0.567) per litre for Abuja, Delta, Rivers, Edo, and Kwara. This project is anticipated to distribute up to 65 million litres of petrol daily while creating approximately 15,000 jobs, potentially reducing fuel costs by over ₦1.7 trillion ($1.13 billion).
This announcement comes amid tensions with the Nigeria Petroleum Products Retail Outlet Owners Association, which had threatened to stop sales due to concerns about market competition distortion. Unions, including the Nigerian Union of Petroleum and Natural Gas Workers, staged a two-day strike but later suspended their action after reaching an agreement with Dangote executives and regulators.
This agreement mandates the unionization of willing refinery employees by September 22 and prohibits retaliation against striking workers. Located in Ibeju-Lekki, the Dangote refinery is Africa’s largest single-train facility, with a capacity to process 650,000 barrels of crude oil per day, and has begun sourcing crude under Nigeria’s naira-for-crude policy. The refinery aims to stabilize fuel supply, revive closed stations, and challenge the Nigerian National Petroleum Company’s dominance in retail pricing.