Bulk fuel consumers and filling stations are abandoning middlemen suppliers in favor of Dangote Petroleum Refinery’s free fuel delivery scheme, which has disrupted traditional supply chains.
Yusuf Othman, President of the National Association of Road Transport Owners (NARTO), voiced concerns during a TVC News program, condemning the free delivery to filling stations, telecom companies, and other bulk users. He noted that buyers are terminating contracts with NARTO’s 30,000 truck operators to access Dangote’s cost-free distribution. “Our members relied on these agreements to secure bank loans for trucks, but now those contracts are at risk as Dangote supplies directly,” Othman said. “This is an illegal act under Section 212 of the PIA, and we urge the Federal Government and NMDPRA to intervene.”
Othman highlighted the economic strain on NARTO members, stating, “If someone else offers the same service for free, it’s a delicate situation.” Although not officially confirmed, he said the shift is ongoing, leading to complaints from NARTO members. On Sunday, Othman declined further comment, citing ongoing negotiations and a potential ceasefire.
Previously, middlemen purchased fuel from refineries or depots and resold it to bulk buyers. However, Dangote’s direct delivery model has prompted buyers to register for cost-saving supplies. The refinery launched its logistics-free scheme last Monday, deploying over 1,000 compressed natural gas-powered trucks to deliver fuel to Lagos, Ogun, Ondo, Oyo, Osun, Ekiti, Edo, Delta, Rivers, Kwara, and Abuja.
The initiative also introduced reduced fuel prices, with petrol retailing at N841 per liter in Lagos and South-Western states and N851 per liter in Abuja, Rivers, Delta, Edo, and Kwara. The first phase targets these regions, with nationwide expansion planned as more trucks become available, according to the Dangote Group.
Abubakar Shettima, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), confirmed on Friday that Dangote’s trucks have begun delivering fuel to stations at no cost. “The trucks are already discharging products in Lagos, Ondo, Ogun, Ibadan, and other Western zones,” Shettima said. “My marketers are pleased, and prices will drop from N865 to N841 per liter under this arrangement.”
Othman urged Dangote to consider the survival of other industry players, emphasizing that while NARTO supports the refinery’s success, the free delivery scheme threatens their livelihoods.
