Dangote Refinery Delay Causes Fuel Shortage in Abuja

Several Nigerian filling stations in the federal capital territory, Abuja, have closed for over four days due to the delayed rollout of Dangote Refinery’s free fuel distribution scheme. Partners in the 650,000-barrel-per-day refinery fuel distribution initiative, including MRS and Conoil filling stations, are experiencing dry tanks, disrupting fuel supply to Nigerians.

Filling station managers in Abuja confirmed the development, stating that they are waiting for supplies from Dangote Refinery. “We were told the product will hit the road from Tuesday, so from Wednesday or so, the products may arrive,” a manager said. Dangote Group announced that Conoil, Eternal Super, Nepal Energies, Kifayat Global Energy, and Riquest and Gas have partnered with the refinery for its fuel distribution scheme.

The $19 billion refinery had earlier announced that its 1000 compressed natural gas trucks would hit Nigerian roads on September 15, 2025, but this has not occurred. The plant had also suspended self-collection gantry sales of premium motor spirit, which was fixed at N820 per liter. However, Dangote Refinery confirmed that it would resume self-collection gantry sales of fuel to its customers from Tuesday.

The national president of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis-Harry, attributed the supply disruption to fears raised by stakeholders over Dangote’s entry into the downstream sector. He emphasized that the downstream sector cannot be driven by a single player and that Dangote Refinery may not have the capacity to deliver petroleum products seamlessly without creating supply disruptions.

Gillis-Harry urged Dangote Refinery to collaborate with marketers and adopt the concept of division of labor to guarantee efficiency. He cautioned that Nigerians should be wary of Dangote’s entrance into fuel distribution, citing concerns over the company’s ability to manage the complex process of transporting products from one location to another.

The controversy surrounding Dangote Refinery’s fuel distribution scheme has been ongoing, with the Depot and Petroleum Products Marketers of Nigeria and the Nigeria Union of Petroleum and Natural Gas Workers accusing the company of stalling competition. Dangote has dismissed these claims, and the dispute remains unresolved. Meanwhile, fuel prices in Lagos and Abuja range from N865 to N920 per liter, further highlighting the need for a stable and efficient fuel distribution system in Nigeria.

Tags:

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top