Private depots deserted as Dangote Refinery begins direct fuel supplies

Private depots in Lagos and environs were deserted, yesterday, as the Dangote Petroleum Refinery rolls out its direct petrol supplies.

Checks by Vanguard indicated that private depots were deserted because the operators expected to benefit from the direct supplies.

A source that pleaded to be anonymous, said: “The Dangote Petroleum Refinery has commenced direct supplies to marketers. This is mainly why the depots have recorded skeletal operations.”

Similarly, the Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said: “The downstream petroleum sector is currently destabilized as the new market leader (Dangote) is calling the shots. The 1, 000 trucks roll out on Monday have heightened tensions among depot owners and retailers causing a sharp decline in purchases.

“For the first time, global oil prices are rising and depot prices are dropping, that is the power of local market forces engineered by Dangote Refinery. By and large, this revolution will drive the industry to embrace best practices and drive prices at the pump.”

Meanwhile, speaking at a conference to mark the first anniversary of the launch of petrol from the 650,000 barrels-per-day refinery, Monday, the President/Chief Executive, Dangote Petroleum Refinery, Aliko Dangote, said the refinery has impacted Nigeria’s energy security.

Dangote highlighted that Nigerians have endured persistent fuel queues since 1975. However, this issue has been steadily resolved since the refinery began rolling out petrol on September 15, 2024.

“We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era,” he said.

Acknowledging the numerous challenges the refinery has faced since its inception, Dangote emphasised the company’s unwavering commitment to Nigeria and Africa.

“The journey has been challenging because we sought to transform the downstream sector in Nigeria. Some believed we were taking food from their tables, which simply isn’t true. What we have done is to make our country and continent proud. Previously, only two African countries were not importing petrol, but regrettably, they have since resumed imports. This is detrimental to Africa,” he added.

Reflecting on the challenges faced during the refinery’s development, Dangote disclosed that the project involved enormous risk. He received repeated warnings from industry experts, investors, local and foreign government officials, who argued that only sovereign nations undertook such large-scale refinery ventures. He admitted that had the project failed, he would have lost all his assets to lenders. “The decision to build the refinery was not easy. If it had gone wrong, lenders would have taken our assets. But we believed in Nigeria and Africa,” he said.(Vanguard)