Dangote Refinery Launches Free Petrol Distribution Amidst Union Opposition
Dangote Refinery has commenced its free nationwide fuel distribution plan in Nigeria, despite opposition from industry unions and marketers. The refinery’s management insists there’s “no going back” on its decision, citing the move as a bold step toward reshaping Nigeria’s oil and gas industry.
According to reports, hundreds of Dangote refinery trucks have already hit Nigerian roads, particularly along the Lekki-Epe Expressway in Lagos State. The company invested N720 billion to import 4,000 compressed natural gas trucks, although only around 1,000 have been delivered so far.
The Dangote Refinery’s free fuel distribution scheme aims to reduce fuel retail prices and save Nigeria N1.7 trillion annually in fuel distribution costs. The company has introduced a new fuel price template, pegging the ex-depot price at N820 per litre, with retail prices varying across states between N841 and N851 per litre.
However, the initiative has sparked mixed reactions from stakeholders. The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) described the plan as a “Greek gift,” while the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) questioned the feasibility of Dangote’s free delivery cost structure.
In response, the Dangote Refinery accused its critics of launching a coordinated campaign of economic sabotage, insisting that their opposition stems from fear of losing control over Nigeria’s fuel supply chain. The refinery also highlighted past controversies in the sector, recalling an incident in 2022 where a member of DAPPMAN supplied petrol with methanol levels above 15%, leading to widespread engine damage
Professor Wumi Iledare, an expert in petroleum economics, noted that Dangote’s move into CNG trucking is innovative and could potentially lower costs, promote gas utilization, and reduce carbon emissions. However, he raised concerns over the danger of unchecked dominance and the need for effective regulation to ensure fair competition
As the Dangote Refinery continues to roll out its fuel distribution network, its impact on the Nigerian energy sector will be closely watched. While the initiative has the potential to bring down fuel prices and enhance energy security, it also underscores the need for robust safety measures and regulatory oversight. #Dangote Refinery Launches Free Petrol Distribution Amidst Union Opposition#
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