Nigeria Today Magazine General News Dangote Launches Nationwide Fuel Distribution Amid Tanker Blockade

Dangote Launches Nationwide Fuel Distribution Amid Tanker Blockade


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The Dangote Petroleum Refinery has announced plans to start nationwide distribution of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) beginning August 15. This decision comes as concerns about fuel scarcity grow in Lagos and other regions due to issues surrounding the E-Call Up system implemented by the Lagos State Government.

Tanker drivers and fuel marketers in Lagos declared they would halt loading petroleum products, citing an inability to pay N12,500 per truck for the E-Call Up system, particularly along the Lekki-Epe Corridor. In response, the Lagos State Government reaffirmed its commitment to the E-Call Up system, accusing unions of overcharging drivers.

To address distribution challenges, Dangote Refinery announced it would deploy 4,000 new Compressed Natural Gas-powered tankers, enhancing delivery capacity and fuel access nationwide. This initiative will also support marketers, petrol station dealers, manufacturers, telecom operators, and aviation firms, aimed at reducing operational costs and improving energy efficiency.

Dangote’s strategy includes a credit scheme for bulk buyers of 500,000 litres and above, expected to revive dormant filling stations, alleviate inflationary pressures, and support the government’s economic reforms.

However, the tanker drivers’ decision to stop fuel loading raised fears of potential shortages if no resolution is reached. The Lagos Deputy Governor emphasized that the E-Call Up system aims to regulate tanker movements to prevent traffic issues similar to those experienced in the Apapa area.

The National Association of Road Transport Owners (NARTO) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) expressed concerns over the high fees, stating they could only afford N2,500 per truck. They emphasized their willingness to negotiate with the government for a more reasonable fee.

IPMAN’s Vice President highlighted the need for government collaboration with all stakeholders to ensure a smooth implementation of the new system, criticizing the hurried rollout without adequate stakeholder engagement.

The Lagos State government defended the fee structure, clarifying that the funds are for the maintenance of facilities built to alleviate traffic congestion and environmental issues, not for government revenue.

Concerns remain about the condition of truck parks and the necessity for proper facilities to accommodate the drivers, as well as the potential for increased fuel scarcity if the situation is not resolved quickly.

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