![Popular Small-Size Actress Aunty Ajara Dies After Liver Illness [VIDEO]](https://thepunchng.com/wp-content/uploads/2026/02/20241109_125042-75x75.jpg)
The fuel supply agreement between the Dangote Petroleum Refinery and 20 major petroleum marketers has collapsed following disagreements over pricing, The PUNCH has exclusively learned.
Under the now-defunct arrangement, the marketers had agreed to offtake 600 million litres of petrol monthly from the Dangote Refinery. However, the breakdown of the deal coincided with a sharp rise in petrol imports, which surged to 1.563 billion litres in November 2025, according to data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Import Volumes Spike Amid Pricing Dispute
The NMDPRA disclosed the figures in its November 2025 Fact Sheet, titled State of the Midstream and Downstream Sector, showing a significant spike in imported petrol volumes during the period when the pricing disagreement intensified.
The deal, reached in October 2025, was introduced as a pilot programme. It involved 20 depot owners collectively lifting 600 million litres of petrol monthly, with each marketer expected to offtake approximately 30 million litres.
Marketers Confirm Original Agreement
The National Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, had earlier confirmed the arrangement, noting that it followed a strategic meeting between the refinery and key downstream players.
According to Ukadike, the agreement aimed to stabilise fuel supply nationwide and ease rising pump prices by reducing the role of multiple intermediaries.
“At the meeting, Dangote announced plans to sell to only 20 selected marketers who would serve as primary distributors. Each marketer was expected to lift a minimum of two million litres, translating to about 600 million litres monthly,” he said.
He added that improved availability would help moderate retail prices across the country.
Pricing Review Disagreement Triggers Breakdown
However, two industry sources told The PUNCH on Thursday that the agreement, which lasted barely a month, collapsed after Dangote declined to adjust its gantry price in line with falling global fuel prices.
One source explained that the deal included a monthly price review mechanism. In October, petrol was sold to marketers at ₦806 per litre for coastal delivery and ₦828 per litre at the gantry.
As part of the arrangement, Dangote temporarily suspended direct sales to independent marketers, limiting them to purchases of 250,000 litres or less. This forced smaller marketers to rely on the 20 approved distributors.
“Dangote agreed to sell only to the approved marketers, while others would buy from them. That structure worked initially,” the source said.
Import Prices Undercut Local Supply
Problems emerged in November when marketers noticed that international petrol prices had fallen below Dangote’s selling price.
“Importers saw that global prices had dropped and expected Dangote’s price to fall to around ₦750 per litre. But the refinery was reluctant to review its price. That triggered massive fuel imports in November,” the source added.
Although Dangote later reduced its gantry price to ₦699 per litre, the lowest in 2025, the cut came too late. Many depot owners who bought fuel at ₦828 per litre in October were left with unsold stock and heavy losses.
Data Shows Imported Fuel Was Cheaper
Data from the Major Energies Marketers Association of Nigeria (MEMAN) and petroleumprice.ng revealed that the average landing cost of imported petrol fell to ₦829.77 per litre by October 30, 2025—lower than Dangote’s ex-depot price at the time.
MEMAN figures showed a steady decline in landing costs:
- ₦849.61 (October 13)
- ₦847.61 (October 14)
- ₦841.54 (October 20)
- ₦839.97 (October 21)
- ₦829.77 (October 30)
In contrast, Dangote Refinery’s gantry price stood at ₦877 per litre as of October 24, 2025.
Fallout Leads to Public Dispute
The pricing dispute later escalated into a public confrontation between Dangote and the former NMDPRA Chief Executive, Farouk Ahmed, over the regulator’s approval of multiple petrol import licences.
Industry sources say the controversy contributed to Ahmed’s resignation in December 2025, marking a dramatic end to a deal that was initially seen as a turning point for Nigeria’s downstream petroleum sector.
