Dangote Refinery reshapes Fuel Market as private depots stand Idle – Reports

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Private depots across Lagos and neighboring areas were largely empty on Monday as the Dangote Petroleum Refinery commenced direct petrol supply to marketers.

Findings revealed that depot operators scaled down activities, anticipating benefits from the refinery’s direct distribution.

A source who requested anonymity confirmed: “The Dangote Petroleum Refinery has commenced direct supplies to marketers. This is mainly why the depots have recorded skeletal operations.”

The Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, described the current situation as a disruption of the downstream petroleum sector. He explained: “The downstream petroleum sector is currently destabilized as the new market leader (Dangote) is calling the shots. The 1,000 trucks roll out on Monday have heightened tensions among depot owners and retailers causing a sharp decline in purchases.

“For the first time, global oil prices are rising and depot prices are dropping, that is the power of local market forces engineered by Dangote Refinery. By and large, this revolution will drive the industry to embrace best practices and drive prices at the pump

At a conference marking the first anniversary of petrol supply from the 650,000 barrels-per-day refinery, President and Chief Executive of Dangote Petroleum Refinery, Aliko Dangote, said the refinery has already strengthened Nigeria’s energy security.

He reminded Nigerians of the country’s long history of fuel scarcity: “We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era.”

Dangote acknowledged the challenges faced during the refinery’s establishment but stressed the company’s loyalty to the nation and the continent. “The journey has been challenging because we sought to transform the downstream sector in Nigeria. Some believed we were taking food from their tables, which simply isn’t true. What we have done is to make our country and continent proud. Previously, only two African countries were not importing petrol, but regrettably, they have since resumed imports. This is detrimental to Africa.”

Reflecting on the risks, Dangote said he had faced repeated discouragement from experts, investors, and officials, who insisted that only sovereign states could handle such massive projects. He admitted, “The decision to build the refinery was not easy. If it had gone wrong, lenders would have taken our assets. But we believed in Nigeria and Africa.

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