Oil Marketers Fear Job Losses as Dangote Takes Over Fuel Distribution
The Dangote Refinery has announced a new plan to supply fuel directly to petrol stations using its trucks, starting August 15. This move could remove the need for middlemen and lower fuel prices, according to Dangote Group. The refinery has bought 4,000 new trucks powered by Compressed Natural Gas (CNG) to carry fuel across the country. They say this will cut transport costs and help consumers pay less.
However, many oil marketers are not happy. Groups like the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) say this plan could destroy thousands of jobs. They say if Dangote controls refining, selling, and transport, other marketers will have no role, and many businesses may shut down. They also fear it may lead to fuel shortages later.
The president of NOGASA, Bennett Korie, warned that letting one company do everything in the fuel supply chain is risky. He compared it to what happened with the Nigerian National Petroleum Company Limited (NNPCL), which tried a similar idea in the past. According to him, Dangote needs to meet with other stakeholders before going ahead, or there may be serious problems for petrol stations and fuel workers.
A Dangote official, who spoke without being named, said their goal is not to take over the market. He explained that they only want to help reduce the high cost of fuel. He added that with so many petrol stations in Nigeria, there is enough business for everyone, and the new plan will help the economy by cutting extra charges.
But PETROAN president Billy Gillis-Harry also raised concerns. He said Dangote controlling everything — refining, distribution, and pricing — might lead to a monopoly, where only one company has full power. He asked Nigerians not to celebrate too early, saying the move may hurt small businesses and fuel retailers. Many fuel station owners already say they are losing money, as they have to sell petrol for less than they buy it.
Recently, some fuel depots increased their prices after Dangote Refinery stopped selling Premium Motor Spirit (PMS) for a short time. Prices went up from ₦815 to ₦870 per litre. Dangote told marketers not to make any new payments for now. This sudden change caused worry in the market. Big depot owners like NIPCO, Sahara, and Aiteo raised their prices, blaming higher crude oil prices.
Now, marketers and other stakeholders are calling for a peaceful meeting to fix the issue. While Dangote’s plan could make fuel cheaper in the long run, many experts believe it must include everyone to avoid damaging the fuel market in Nigeria.
