- Dangote Refinery’s direct fuel supplies have disrupted private depots, leaving skeletal operations across Lagos and environs.
- The refinery strengthens Nigeria’s energy security and reduces fuel queues that have persisted since 1975.
Dangote Refinery’s direct fuel supplies have unsettled Nigeria’s downstream petroleum market. Yesterday, private depots in Lagos and neighbouring states stood largely empty as the refinery rolled out its direct petrol distribution.
Checks confirmed that depot operators scaled down activities because they anticipated benefits from Dangote’s direct supplies. A source explained that the refinery has begun supplying marketers directly, leaving depots with only skeletal operations.
Furthermore, Olatide Jeremiah, CEO of Petroleumprice.ng, noted that the downstream sector faces disruption as Dangote asserts dominance. He revealed that the rollout of 1,000 trucks on Monday intensified tensions among depot owners and retailers, triggering a steep purchase fall.
He added that global oil prices rose for the first time while local depot prices dropped. According to him, this reflects the strength of local market forces now driven by Dangote Refinery’s direct fuel supplies. Jeremiah stressed that this shift will compel the sector to adopt global best practices and stabilise pump prices.
Meanwhile, at a conference marking the first anniversary of the refinery’s petrol launch, Aliko Dangote addressed the nation. He emphasised that the refinery has already improved Nigeria’s energy security.
Dangote explained that Nigerians have endured persistent fuel queues since 1975. However, the queues have steadily reduced since the refinery started distributing petrol on September 15, 2024. He said Nigerians are now experiencing a new phase of stability.
Acknowledging the refinery’s long journey, Dangote described the challenges of transforming Nigeria’s downstream sector. He stressed that the company remains committed to Nigeria and Africa despite resistance from some industry players.
He clarified that the refinery’s operations do not deprive stakeholders of opportunities. Instead, they enhance national pride and strengthen Africa’s energy independence. He warned that the continent would progress once free from petrol imports, but most African countries have sadly resumed them. He described this reliance on imports as detrimental to the continent’s progress.