Dangote Refinery has commenced fuel distribution nationwide in Nigeria, sparking mixed reactions among stakeholders and the general public. The refinery’s Compressed Natural Gas trucks have begun transporting fuel across the country, with hundreds of vehicles already on the roads. This development follows the company’s announcement that it has invested N720 billion in importing 4,000 compressed natural gas trucks, although only around 1,000 have been delivered so far.
The Dangote Group expects this initiative to reduce fuel retail prices and save the country N1.7 trillion annually in fuel distribution costs. The company has also introduced a new fuel price template, with an ex-depot price of N820 per litre and varying retail prices across states ranging from N841 to N851 per litre.
However, the move has raised concerns among stakeholders in the oil downstream sector. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has expressed skepticism about the initiative, describing it as a “Greek gift” to Nigerians. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has also questioned the feasibility of Dangote’s free delivery cost for fuel distribution nationwide.
On the other hand, the Independent Petroleum Marketers Association of Nigeria has thrown its weight behind the initiative, urging its members to register with Dangote Refinery. Professor Wumi Iledare, an expert in petroleum economics, has noted that while Dangote’s move into CNG trucks may lower costs and reduce emissions, it also raises concerns about dominance and the potential stifling of competition in the sector.
Furthermore, the increased presence of Dangote trucks on Nigerian roads has sparked safety concerns, particularly in light of recent accidents involving the company’s vehicles. The surge in truck-related accidents has resulted in fatalities and injuries, highlighting the need for robust safety measures and regulatory oversight.
As Dangote Refinery continues to roll out its fuel distribution network, the company’s impact on the Nigerian energy sector will be closely watched. While the initiative has the potential to bring down fuel prices and enhance energy security, it also underscores the need for effective regulation and safety standards to mitigate potential risks and disruptions.
