Starting August 15, 2025, Dangote Refinery will begin selling petrol (PMS) and diesel directly to fuel stations, industries, telecoms firms, aviation companies, and big users across Nigeria. The company says it will even deliver for free using a fleet of CNG-powered tankers, aiming to reduce costs and boost supply efficiency.
Fuel marketers are uneasy—some believe this plan could upset the traditional distribution system and possibly create a covert monopoly. Associations like PETROAN warn that independent stations and truck drivers may be squeezed out as Dangote becomes both refiner and distributor.
Energy expert Prof. Wumi Iledare says this is not a plot for monopoly but a step called vertical integration. He explains that allowing stations to buy directly from Dangote could bring down landing costs, boost availability, and lower pump prices—provided regulations ensure fair play.
Olatide Jeremiah (PetroleumPrice.ng) calls the development a revolution in the downstream sector—removing middlemen, cutting inflated costs, and ending price manipulation at the pump.
Benefit | Risk |
---|---|
Direct delivery may lower fuel cost | Traditional marketers and truckers may lose business |
Boost local refining capability | Power concentrated in one company may stifle competition |
Improve supply reliability | Heavy reliance on new tanker fleet raises road safety concerns |
The plan moves Nigeria closer to self-sufficiency and economic growth—but its success largely depends on regulatory oversight to protect competition and consumer interest.