Depot Owners Speak as Dangote Unleashes 4,000 Fuel Trucks Nationwide, Begins Distribution Bonanza

• Marketers have raised concerns regarding the plan by Dangote Refinery to begin nationwide fuel distribution on August 15, 2025
• They say the plan by the mega refinery to unleash 4,000 CNG-powered trucks will mean the death of jobs and businesses
• Other experts say the move is commendable, saying that it will provide easier access to fuel in the far North

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Following Dangote Refinery’s commencement of distribution of petrol and diesel nationwide, starting August 15, members of the Dangote Marketers Group have raised serious concerns, describing the move as a death sentence for the businesses and value chain.

The marketers, who bridge the gaps between depot owners and filling stations, fear that the mega refinery’s new strategy of bypassing traditional middlemen and offering direct sales and logistics to end-users will spell doom for their businesses.

Depot owners fear job losses

One marketer described the move as sounding the death knell on their businesses and means of livelihood, stating that jobs, businesses, and even families would be affected by the impact.

Petroleumpriceng reported that independent marketers traditionally operate as financing and logistics bridges between depots and retail outlets.

The report disclosed that fuel station owners mostly rely on them for credit, loading processing, and truck mobilisation.

Dangote to unleash 4,000 trucks for fuel distribution

Experts say Dangote’s new model offers direct sales, logistics, with 4,000 CNG-powered trucks, and even credit for bulk buyers, which has effectively removed the need for middlemen.

The report quotes a marketer, Mide Leo, as saying that one of his clients, who owns about 15 haulage trucks, became numb after hearing the news.

Others argue that Dangote’s model is a threat to the existing landscape, which supports thousands of workers in haulage, depot representatives, and logistics.

Some marketers also expressed concern over the silence of regulators such as the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which developed the Acquila tracking platform.

They expressed concerns that the refinery’s growing dominance, especially after President Bola Tinubu’s visit, could tilt the market to Dangote’s favour.

Others said that the model is unsustainable, despite offering free transportation.

Experts express mixed views

While some experts hailed the move as progress, others warn that the move reeks of monopolistic tendencies, as Nigeria suffers from the impact of fuel subsidy removal.

However, other analysts say that the move is good for the industry as it will make petrol access easier and cheaper, especially in the far North.

“Dangote's decision to supply directly to marketers is a win for both the company and  Nigerians who live in areas far from Lagos. For Nigerians, it will cut the prices of the products in those locations, like Borno, Yobe, Cross River, Akwa Ibom, etc. For the company, it will sell more of its products, and will also enjoy goodwill from Nigerians who see Dangote as the most patriotic businessman. But for retailers, it's a bad day,” Ishaya Ibrahim, a financial analyst, said.

Dangote, more depot owners increase petrol prices

Legit.ng earlier reported that fuel depot owners have increased their prices in response to a global oil spike.

Between Wednesday, June 11, and Friday, June 13, 2025, fuel prices rose sharply by as much as 14.6% in some locations.

The development came amid a notable rally in global crude oil prices. Brent gained about 5.54%, closing at $73.20, WTI hit 5.58% to $71.84, while Murban crude rose 4.84% to sell at $72.60 per barrel.

Source: Legit.ng