Vitol, Trafigura, and BP Plc are currently the primary buyers of Dangote Refinery’s products, purchasing 75% of its output, according to recent data. The three companies have accounted for the majority of the refinery’s shipments since production levels began increasing in mid-2024, as reported by the Geneva-based oil and gas analytics firm, Precise Intelligence.
This development follows a growing dispute between Dangote Refinery and local Nigerian marketers over petrol pricing and supply issues. Aliko Dangote, the refinery’s CEO, asserts that the facility currently holds approximately 500 million liters of petrol in storage.
International Traders Dominate Product Purchases
The report reveals that Vitol and Trafigura, two of the world’s leading oil traders, have become the dominant buyers of Dangote Refinery’s refined petroleum products. Vitol, based in Rotterdam, operates globally with key offices in cities such as Geneva, Houston, London, and Singapore. Similarly, Trafigura, headquartered in Singapore, has operations across more than 50 countries. BP Plc, a British multinational oil and gas company, is also involved in purchasing products from the refinery.
Precise Intelligence data shows that diesel (automotive gasoil) is the largest product category being lifted from Dangote Refinery, followed by fuel oil. Together, these products account for over 60% of the refinery’s output. Other products include petrol and jet fuel.
Ongoing Disputes with Local Marketers
Dangote Refinery began supplying petrol to the Nigerian market in September 2024, initially selling exclusively to the Nigerian National Petroleum Corporation (NNPC). However, following the full deregulation of the downstream sector by the Nigerian government, NNPC stopped being the sole off-taker, enabling local marketers such as the Independent Petroleum Marketers Association of Nigeria (IPMAN) to engage directly with the refinery.
Despite this shift, the relationship between Dangote Refinery and local marketers has been contentious. Dangote has suggested that some marketers may be bypassing his refinery in favor of importing petrol from abroad. He argues that the fuel scarcity in Nigeria could be easily addressed if marketers would purchase from his facility. In an interview, Dangote emphasized that his company is not involved in retailing and that retailers need to purchase directly from the refinery.
Price Disputes
Some marketers contend that petrol from Dangote Refinery is more expensive than imported fuel. However, Dangote’s management insists that their prices are competitive and lower than the regulated price set by NNPC following deregulation. Anthony Chiejina, a spokesperson for Dangote Refinery, also suggested that marketers seeking to import substandard fuel might offer lower prices than the refinery’s official rate.
About Dangote Refinery
Dangote Refinery is Africa’s largest single-train refinery and one of the largest in Europe, with an investment valued at $20 billion by Aliko Dangote, Africa’s wealthiest individual. The refinery currently processes around 420,000 barrels of oil per day, with plans to increase capacity to 650,000 barrels per day. This capacity not only meets Nigeria’s domestic fuel needs—around 40 million liters of petrol per day—but also positions the refinery to supply neighboring African countries, including Ghana, Togo, and Benin, helping to boost the continent’s energy security.
