By Sunday Michael Ogwu
The Dangote Oil Refinery will in August begin direct supply of fuel to retail stations, manufacturers, telecoms firms, and other large users across Nigeria
The move which is aimed at enhancing supply, will puts the biggest fuel refinery in Africa in direct competition with local petroleum marketers.
Africa’s biggest refinery with 650,000 bpd capacity began processing gasoline for the local market last year and has allowed local fuel traders lift products from its refinery but now it seeks to take on distribution.
To facilitate the undertaking, the refinery said in a statement on Sunday that it had procured 4,000 new Compressed Natural Gas (CNG)-powered trucks, and will build over 100 CNG refuelling stations across the country.
The refinery said it will also offer a credit facility, allowing purchases of 500,000 liters to access an additional 500,000 liters on credit for two weeks under bank guarantee.
Dangote’s planned deployment of 4,000 trucks is more than double the number of trucks currently in operation and this is unsettling local fuel traders. “In one fell swoop, he’s trying to wipe us out,” said Billy Gillis Harry, head of Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN).
The group comprising over 6,700 members said introducing cheaper CNG trucks poses a threat to the livelihood of truckers and will erode the businesses of traders supplying the telecom companies, retail stations and industries.
Sunday Michael Ogwu is a Nigerian journalist and editor of Pinnacle Daily. He is known for his work in business and economic reporting. He has held editorial roles in prominent Nigerian media outlets, where he has focused on economic policy, financial markets, and developmental issues affecting Nigeria and Africa more broadly.