The launch of Dangote Refinery’s CNG-powered trucks has been met with skepticism from oil marketers, who argue that the new fleet will not be sufficient for effective distribution of petroleum products nationwide.
According to Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria, while the investment in CNG-powered trucks is a step in the right direction, it does not guarantee seamless distribution across the country. Gillis-Harry emphasized the importance of inclusion, stating that oil marketers’ investments in the downstream sector should not be discarded. He noted that many marketers are also investing in CNG trucks, adding that Dangote Refinery’s innovation is not unique to them.
Gillis-Harry explained that the primary concern is ensuring that petroleum products reach all areas of the country, including those that Dangote’s trucks may not be able to access. As the last link in the supply chain, retail outlet owners play a crucial role in distributing products to consumers. Gillis-Harry expressed his support for Dangote Refinery’s success, while also emphasizing the need for collaboration to achieve effective distribution.
This development comes on the heels of a recent address by billionaire businessman Femi Otedola, who advised members of the Depot and Petroleum Products Marketers Association of Nigeria to sell their properties, restructure, and reinvest in the Port Harcourt refinery to remain relevant in the sector. The oil marketing industry is undergoing significant changes, with the Dangote Refinery’s launch expected to impact the dynamics of petroleum product distribution in Nigeria.
The effectiveness of Dangote Refinery’s distribution network remains to be seen, and industry stakeholders are watching closely to determine how the new refinery will interact with existing marketers and distribution channels. As the Nigerian energy landscape continues to evolve, the need for efficient and reliable distribution of petroleum products will remain a top priority. With multiple stakeholders involved, collaboration and cooperation will be essential to ensuring that the country’s energy needs are met.
