Private depots across Lagos and surrounding areas were largely deserted yesterday as the Dangote Petroleum Refinery began rolling out direct petrol supplies to marketers.
Vanguard checks revealed that many depot operators opted to pause operations, anticipating benefits from the refinery’s direct supply model. An anonymous source said, “The Dangote Petroleum Refinery has commenced direct supplies to marketers. This is mainly why the depots have recorded skeletal operations.”
Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, said the new distribution model has created turbulence in the downstream sector.
“The downstream petroleum sector is currently destabilized as the new market leader, Dangote, is calling the shots. The 1,000 trucks rolled out on Monday have heightened tensions among depot owners and retailers, causing a sharp decline in purchases,” he explained.
Jeremiah further highlighted the unique market dynamics, noting that global oil prices are rising while depot prices are dropping. “That is the power of local market forces engineered by Dangote Refinery. By and large, this revolution will drive the industry to embrace best practices and manage prices at the pump,” he added.
Speaking at a conference marking the first anniversary of petrol production from the 650,000 barrels-per-day refinery, Aliko Dangote, President and Chief Executive, emphasized the refinery’s impact on Nigeria’s energy security.
“We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era,” Dangote said, acknowledging the persistent challenges the country has faced.
He reiterated the company’s commitment to Nigeria and Africa despite hurdles. “The journey has been challenging because we sought to transform the downstream sector in Nigeria. Some believed we were taking food from their tables, which isn’t true. What we have done is make our country and continent proud,” Dangote stated.
Dangote also noted that previously only two African countries were not importing petrol, but both have since resumed imports, a development he described as detrimental to the continent.
The refinery’s direct supply strategy marks a significant shift in Nigeria’s petroleum sector, reducing dependence on traditional depots and mitigating the long-standing fuel queue problem.
Industry observers say that as the Dangote Petroleum Refinery expands operations, Nigeria may witness more stable pricing and improved accessibility to petrol across urban and rural areas.
With over 1,000 trucks rolling out petrol, the refinery is gradually establishing itself as a dominant player in the Nigerian fuel market, challenging traditional operators and setting a precedent for best practices in distribution and market regulation.
As Nigerians experience shorter fuel queues and enhanced access, the Dangote Refinery’s operations are increasingly seen as pivotal in shaping the future of the country’s energy landscape.
This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members
