Dangote’s 4,000 CNG Trucks Fuel Distribution Sparks Panic Among Nigeria’s Marketers, Tanker Drivers

• Dangote Refinery plans to start direct fuel distribution using 4,000 CNG trucks, with 25 marketers already signed up for the initiative
• This move has raised concerns among tanker drivers and fuel suppliers about possible job losses and market dominance
• More petroleum marketers are expected to align with Dangote’s plan to distribute fuel directly to filling stations and bulk consumers

Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.

As Dangote Refinery and Petrochemical Limited intensifies moves to begin using 4,000 Compressed Natural Gas (CNG) trucks to distribute fuel, many players in the oil and gas industry have started aligning with the company’s plan.

As of Friday, July 18, at least 25 oil marketers had signed up for direct supply from the refinery, a significant increase from just three in the beginning.

This growing interest shows the industry’s rising confidence in Dangote’s fuel distribution model.

Dangote Refinery set to disrupt fuel supply chain

Last month, the refinery announced it would supply petrol and diesel straight to retailers, factories, telecom companies, and the aviation sector.

This marked a major shift from Nigeria’s traditional fuel distribution method.

A senior Dangote Group official confirmed the expansion, stating that the company has seen more marketers sign up for its free delivery plan using its own trucks.

The refinery says its goal is to reduce the country’s reliance on imported fuel and make products more available across Nigeria.

Experts believe the new distribution system could lower transportation costs and pump prices, especially in northern areas, Punch reports.

However, there are concerns about Dangote gaining too much control over the fuel market, which could affect fair competition and regulation.

Tanker drivers on edge as Dangote takes over

Meanwhile, leaders of tanker drivers say their members are increasingly worried about their future.

Many of them worry that they might lose their jobs once Dangote starts delivering fuel directly to filling stations and large buyers.

Many drivers currently collect fuel from Dangote’s loading stations, but once the company begins using its own trucks nationwide, independent drivers may have less work or none at all.

Some drivers might eventually be hired by Dangote, though this is not confirmed.

Despite other depot operators still using their own trucks, analysts believe many will switch to Dangote’s free delivery service to save money. This could force some marketers to park their trucks entirely.

Stakeholders to meet over Dangote plan

The President of the National Association of Road Transport Owners, Yusuf Othman, said discussions are ongoing among stakeholders to address the issue, but he did not give details.

Similarly, the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) is worried that its members may be pushed out of business if Dangote starts supplying fuel directly to major customers.

NOGASA has called a National Executive Council meeting in Abuja on July 31 to discuss the situation.

The meeting was confirmed in a statement by the association’s Secretary-General, Tunde David, following talks with their National President, Benneth Korie.

Fuel price instability persists

In related news, Legit.ng reported that Nigerians are struggling with volatile petrol prices, which are causing significant challenges for motorists and business owners.

The recent price hikes have sparked widespread frustration, with fuel costs now consuming a large portion of consumer incomes.

PETROAN has called for more stable pricing, advocating for a six-month observation period before implementing new price changes.

Source: Legit.ng