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Dangote’s Free Fuel Delivery Cuts Middlemen, Drops Prices.
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NARTO warns the scheme threatens 30,000 truck operators’ survival.
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Petrol prices drop to N841 in Lagos and N851 in Abuja, Rivers.
launch of Dangote Refinery’s direct fuel distribution scheme has triggered a major shake-up in Nigeria’s downstream sector, as bulk buyers and filling stations abandon middlemen to embrace free delivery services from the refinery.
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EKO HOT BLOG reports that the President of the National Association of Road Transport Owners, Yusuf Othman, raised concerns during a live programme on TVC News, warning that the move threatens thousands of truck owners who had existing fuel distribution contracts.
Othman explained that NARTO members operate over 30,000 trucks, many financed through bank loans tied to formal distribution agreements with companies.
“Those agreements are now at stake because a big player has moved in to supply directly, without considering existing contracts. Our members are worried because if trucks are no longer used, survival becomes difficult,” Othman said.
He called on the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority to intervene, describing the scheme as “illegal under Section 212 of the Petroleum Industry Act.”
The Dangote Group began the logistics-free scheme last Monday with over 1,000 compressed natural gas-powered trucks deployed to Lagos, Ogun, Ondo, Oyo, Osun, Ekiti, Edo, Delta, Rivers, Kwara, and Abuja. The company said the first phase would focus on the South-West, the Federal Capital Territory, and key oil-producing states before nationwide expansion.
The new system has also slashed pump prices. Petrol will now sell at N841 per litre in Lagos and other South-West states, while Abuja, Rivers, Delta, Edo, and Kwara will retail at N851.
Independent marketers welcomed the initiative. The National President of IPMAN, Abubakar Shettima, confirmed that Dangote’s trucks have started deliveries in Lagos, Ogun, Ondo, and Ibadan, saying the move will ease costs and reduce fuel prices from N865 to N841 per litre.
