Marketers kick against Dangote’s  direct fuel distribution, say there’ll be chaos

The Dangote Petroleum Refinery’s decision to bypass traditional fuel depots and supply products directly to major consumers has sparked a sharp backlash from industry groups, who warn it could destabilise the nation’s fuel supply chain.

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has raised concerns that the move, set to roll out August 15 with 4,000 new Compressed Natural Gas-powered tankers, could cause long-term product shortages, disrupt existing networks, and threaten thousands of jobs.

At NOGASA’s Annual General Meeting in Abuja, the association’s president, Bennett Korie, urged Dangote to reconsider.

“We are pleading that Mr President should intervene in this matter by telling Dangote to slow down, and go by the rules of the game. Nobody’s against the refinery… Remove your hand from this direct distribution. It will bring you problems,” Korie warned.

He likened the plan to past mistakes by the Nigerian National Petroleum Company Limited (NNPCL), noting that the state-owned refineries began to fail after venturing into direct retail operations.

The Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) has also backed NOGASA’s stance. Its president, Billy Gillis-Harry, cautioned Nigerians not to celebrate too soon.“

“We don’t need to pretend that we don’t know what’s going to happen… one company wants to refine, one company wants to stock, one company wants to do the logistics of distribution, and one company wants to fix prices. So that one company is going to be both a businessman and a regulator,” he said.

Depot prices have already begun climbing. On Thursday, petrol prices at private depots jumped from ₦815 to ₦870 per litre, coinciding with Dangote’s suspension of petrol sales at its terminals.

Dangote officials, however, insist the plan is designed to cut logistics costs and bring down pump prices.

“Why would they want to disrupt? Somebody wants to distribute fuel for free (without the cost of logistics)… Why are they angry that an individual, a private sector person, wants to do that? Why are you angry? Why are you pained? And is this market not big enough for everybody to survive?” a senior company official asked.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has taken a more measured tone, with its National Vice Chairman, Hammed Fashola, calling for dialogue.“Everybody wants to make sure they remain in business… I believe Dangote, too, will be listening to the stakeholders. So, I think at the end of the day, everybody will be on the same page,” he said.

Despite assurances from Dangote, industry stakeholders are urging the government to mediate and ensure independent marketers remain in the distribution loop, warning that bypassing them could risk a repeat of past disruptions in Nigeria’s petroleum sector.

(PUNCH)