Dangote Refinery’s Direct Fuel Supplies Leave Private Depots Deserted

Private depots in Lagos and surrounding areas were largely deserted on Monday as the Dangote Petroleum Refinery began rolling out direct petrol supplies to marketers.

Checks by Vanguard revealed that depot operations slowed significantly, with operators awaiting opportunities to benefit from the new supply structure.

A source, who requested anonymity, explained: “The Dangote Petroleum Refinery has commenced direct supplies to marketers. This is mainly why the depots have recorded skeletal operations.”

Confirming the impact, Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said:

“The downstream petroleum sector is currently destabilized as the new market leader (Dangote) is calling the shots. The 1,000 trucks roll out on Monday have heightened tensions among depot owners and retailers causing a sharp decline in purchases.
For the first time, global oil prices are rising and 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 drive prices at the pump.”

Speaking at a conference marking one year since the refinery first launched petrol production, President/Chief Executive of Dangote Petroleum Refinery, Aliko Dangote, highlighted its impact on Nigeria’s energy stability.

“We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era,” Dangote said.

Acknowledging the challenges of the project, he noted:

“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 simply isn’t true. What we have done is to make our country and continent proud. Previously, only two African countries were not importing petrol, but regrettably, they have since resumed imports. This is detrimental to Africa.”

Dangote further revealed that the project came with enormous financial risks, recalling repeated warnings from experts and investors that only sovereign nations typically embark on such ventures.

“The decision to build the refinery was not easy. If it had gone wrong, lenders would have taken our assets. But we believed in Nigeria and Africa,” he stated.

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