Mixed Reactions as Dangote Refinery Embarks on Bold Nationwide Fuel Distribution Drive

Dangote Group said the scheme is expected to bring down fuel retail prices and is projected to save the country N1.7 trillion annually in fuel distribution costs.

On Thursday, the Dangote Refinery announced a new fuel price template, putting the ex-depot price at N820 per litre and different retail prices across states between N841 and N851 per litre.

However, the scheme has created disruption and apprehension in Nigeria’s oil downstream sector.

Stakeholders raise concerns

The Nigeria Union of Petroleum and Natural Gas, NUPENG, which had been in a face-off with Dangote Refinery over alleged anti-labour practices by the oil firm, described the company’s fuel distribution initiative as a Greek gift to Nigerians.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) also said Dangote’s free delivery cost for fuel distribution nationwide is misleading.

But contrary to DAPPMAN and NUPENG’s stand, the Independent Petroleum Marketers Association of Nigeria has thrown its weight behind the initiative, urging members to register with Dangote Refinery.

Dangote truck accidents

Meanwhile, the scheme with thousands of trucks to hit Nigerian roads comes at a time when there is a surge in Dangote’s truck-related accidents across Nigerian roads.

Recall that Ruth Otabor, the sister of Big Brother Naija Season 7 winner, Phyna, died after she was crushed by a Dangote truck in Auchi.

At the weekend, many were injured when truck from Dangote Refinery and a Benue Links passenger bus collided on the Lagos–Kogi expressway.

Dangote Trucks: Between Convenience and Concern – Prof. Iledare

Speaking on the development, Professor Emeritus of Petroleum Economics, Wumi Iledare, said Dangote’s move into CNG trucks is a bold move and may lower costs; however, he raised the concern of dominance without checks.

According to him, with Dangote already controlling refining, transport dominance risks stifling competition.

“Dangote’s move into CNG trucks is bold and could lower costs, cut emissions, and deepen gas use. Vertical integration is not the issue— it’s common worldwide.

“The concern is dominance without checks. With Dangote already controlling refining, transport dominance risks stifling competition. Without a strong regulator, monopoly fears are real.

“Safety is another worry. Nigerians still mourn Ruth, Phyna’s sister, killed by a Dangote truck in Auchi. Add to that is the likely traffic gridlock from Lekki–Epe to highways nationwide.

“The way forward is clear: encourage innovation, but strengthen regulation, enforce safety, and protect fair competition. Only then can convenience outweigh the disruptions,” he told said.