The launch of Dangote Refinery’s fuel distribution scheme has stalled nearly two weeks after its scheduled start, sparking uncertainty among marketers and industry stakeholders.
The initiative, announced by refinery owner Aliko Dangote, was expected to significantly reduce logistics costs, with the company estimating annual savings of N45 per litre and about N1.2 trillion in distribution expenses. Dangote described it as a “major shakeup” of Nigeria’s downstream oil sector.
Despite its promise, the scheme has yet to commence, and the refinery has not provided an official explanation for the delay. Earlier this month, the company reportedly took delivery of compressed natural gas (CNG) trucks, but the exact number remains unclear, with estimates ranging between 450 and 1,000.
Stakeholders remain divided over the likely impact. The National Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) expressed cautious support but warned of potential market disruptions.
Its president, Billy Gillis-Harry, praised the refinery’s effort but dismissed suggestions that it would lower pump prices. He pointed to Dangote’s cement distribution model, where costs have continued to rise despite similar interventions.
“When one company dominates every segment of the business, monopolistic tendencies and price control are inevitable. I don’t think this scheme will reduce petrol prices,” Gillis-Harry told Daily Post. He added that marketers, depot owners, and transport unions should retain a role in distribution to prevent job losses and market distortion.
By contrast, the Independent Petroleum Marketers Association of Nigeria (IPMAN) believes the scheme could lower costs once operations begin. Its president, Abubakar Maigandi, said members are waiting for Dangote to resolve operational issues.
“According to Dangote, there is a possibility that fuel prices will go down because transportation costs will be removed. That means it could be lower than what people are currently paying,” Maigandi said.
The Dangote Group has yet to respond to requests for comment on the delay. As of Monday evening, retail fuel prices ranged between N885 and N910 per litre in Abuja. Global oil benchmarks stood at $68.47 per barrel for Brent and $64.47 for West Texas Intermediate in early Tuesday trading, according to Oilprice.com.
