Private depots in Lagos and surrounding areas were largely deserted on Monday as Dangote Petroleum Refinery commenced direct petrol supplies to marketers.
Industry checks showed depot activity dropped sharply as operators anticipated limited demand, with buyers shifting to the new supply channel.
A petroleum market source confirmed that “the Dangote Petroleum Refinery has commenced direct supplies to marketers,” adding this was the main reason for the skeletal operations recorded at private depots.
Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, said the development had unsettled the downstream sector. “The new market leader is calling the shots. The 1,000 trucks roll out on Monday has heightened tensions among depot owners and retailers, causing a sharp decline in purchases,” he noted.
Jeremiah added that for the first time, depot prices were falling despite rising global oil prices. He described this as “the power of local market forces engineered by Dangote Refinery,” stressing it would enforce best practices and stabilise pump prices.
Speaking at a conference marking one year since petrol supply began from the 650,000 barrels-per-day facility, Dangote Group President Aliko Dangote said the refinery was reshaping Nigeria’s energy security.
He recalled that fuel queues had plagued Nigerians since 1975, but argued the refinery had begun addressing the problem since September 2024. “We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era,” he said.
Dangote acknowledged resistance from vested interests and the risks involved in the project, saying he had been warned such ventures were reserved for sovereign states. “If it had gone wrong, lenders would have taken our assets. But we believed in Nigeria and Africa,” he said.
