Private depots in Lagos and surrounding areas witnessed skeletal activity on Monday as the Dangote Refinery commenced direct supply of petrol to marketers, disrupting traditional distribution channels in Nigeria’s downstream sector.
Industry checks revealed that several depot operators recorded a sharp decline in purchases as marketers shifted focus to the refinery’s direct supply lines.
The move marks a shift in market dynamics with the 650,000 barrels-per-day refinery emerging as the dominant player.
Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, described the development as a turning point for the sector.
“The new market leader is calling the shots. The rollout of 1,000 trucks has heightened tensions among depot owners and retailers, leading to a steep drop in activity,” he said.
Jeremiah further noted that for the first time, domestic depot prices are falling while global oil prices are on the rise, crediting the refinery with reshaping local market forces.
Marking the first anniversary of petrol production from the facility, Aliko Dangote, President and Chief Executive of Dangote Petroleum Refinery, stated that the project has eased Nigeria’s decades-long fuel supply crisis.
He emphasized that queues at filling stations, persistent since 1975, have started to diminish following the refinery’s entry into the market.
Industry analysts maintain that the refinery’s direct supply will accelerate Nigeria’s downstream reform, reduce reliance on intermediaries and strengthen energy security, positioning the facility as a decisive force in the nation’s petroleum sector.
