The Dangote Refinery Plan: A Threat to Nigeria’s Fuel Distribution Network

The Dangote Refinery Plan: A Threat to Nigeria’s Fuel Distribution Network

The Dangote Petroleum Refinery’s plan to supply refined petroleum products directly to end-users has sparked concerns among oil marketers, who warn that it could lead to a nationwide disruption, long-term product scarcity, and the collapse of existing supply networks. The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) have expressed their reservations about the plan, citing the potential risks to the industry.

The Concerns of Oil Marketers
NOGASA’s National President, Bennett Korie, has called on the Dangote refinery to halt its plan and engage in further dialogue with stakeholders before commencing the distribution of products to end-users. Korie warned that Dangote alone cannot handle nationwide distribution of products sustainably and urged President Bola Tinubu to intervene in the matter.

However, an official of the Dangote Group has dismissed the concerns of the oil marketers, describing their position as “anti-Nigeria.” The official argued that the plan to supply products directly to end-users is aimed at reducing logistics costs and improving efficiency.

Meanwhile, the prices of petrol at depots have spiked by up to 7% in recent days, with some dealers selling at N870 per litre. This development has raised concerns about the potential impact of the Dangote refinery plan on fuel prices and availability.

The Dangote refinery plan has sparked a heated debate among stakeholders in the oil and gas industry. While the refinery’s plan may have its benefits, the concerns of oil marketers cannot be ignored. It remains to be seen how this issue will be resolved and what impact it will have on Nigeria’s fuel distribution network.