Dangote Refinery Reshaping Nigeria’s Oil Industry with Direct PMS Supply
In a bold move that signals a new dawn in Nigeria’s petroleum sector, the Dangote Petroleum Refinery has announced the commencement of direct supply of Premium Motor Spirit (PMS) with free delivery, effective Monday, September 15, 2025.
The new gantry price of ₦820 per litre sets a strong benchmark, with retail pump prices fixed at ₦841 for Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti States. Abuja, Delta, Rivers, Edo, and Kwara States will also benefit at a retail pump price of ₦851. Operations will expand to other states in due course.
This development carries three major implications for Nigeria’s oil and gas sector:
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Cost Relief for Filling Station Owners
By supplying directly with free delivery, Dangote Refinery is cutting off multiple layers of middlemen and unnecessary charges. This reduces operational costs for station owners, ensuring profitability while keeping pump prices more stable for consumers. Breaking the Grip of Union MonopoliesFor years, petroleum unions and associations have wielded excessive control over supply chains, often holding the nation to ransom with strikes. Dangote’s new direct model trims their influence, creating a more competitive and transparent system.
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Driving Market Efficiency
With consistent supply and transparent pricing, the refinery is reshaping the oil industry by fostering efficiency, stability, and investor confidence.
However, while Dangote’s impact is undeniable and commendable, government must ensure that other local refineries are revived and fully operational. A single supplier—no matter how efficient—should not hold absolute control of the market. Encouraging competition will keep prices fair, prevent monopoly, and guarantee long-term energy security for Nigerians.
Dangote has set the pace; now it is the duty of government and stakeholders to ensure that Nigeria’s petroleum market grows stronger, fairer, and more competitive.
_Comrade Abu Michael, a social activist, theologian, policy political/political analyst, and blogger writes from Edo State_
