The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has issued a warning regarding Dangote Petroleum Refinery’s plans to bypass existing distribution channels and supply refined petroleum products directly to end-users. They claim this could lead to nationwide disruptions, product scarcity, and the collapse of current supply networks.
NOGASA’s National President, Bennett Korie, called for the refinery to halt its plans and engage in further dialogue, citing the negative consequences faced by non-functional refineries under the Nigerian National Petroleum Company Limited (NNPCL). He urged President Bola Tinubu to intervene, emphasizing that Dangote cannot manage nationwide distribution alone.
In contrast, a Dangote Group official characterized NOGASA’s stance as anti-Nigeria, arguing that the refinery’s strategy aims to reduce logistics costs associated with fuel distribution.
On Thursday, petrol prices at depots surged from N815 to N870 per litre, coinciding with Dangote’s announcement to use 4,000 new Compressed Natural Gas-powered trucks for direct distribution, set to launch on August 15. This initiative is projected to enhance energy efficiency and save Nigerians significant costs annually.
Korie warned that if existing retail outlets are driven out of business by Dangote’s direct approach, reviving the supply chain during disruptions would be challenging. He referred to past failures of NNPCL’s direct distribution model as a cautionary tale.
The debate surrounding this issue has intensified, with concerns about market monopolization and the impact on thousands of jobs within the oil distribution sector if independent marketers are sidelined. Meanwhile, prices at depots have continued to fluctuate, raising fears of further price hikes at the pump.
The Dangote official maintained that the plan would not threaten livelihoods but rather enhance efficiency across the industry. The situation remains tense as stakeholders await further developments.
