The launch of Dangote Refinery’s free fuel distribution service has disrupted Nigeria’s downstream supply network, prompting bulk buyers and filling stations to bypass middlemen and source petrol directly from the refinery.
Yusuf Othman, President of the National Association of Road Transport Owners (NARTO), raised the alarm during a live programme on Television. He said the refinery’s new system — which delivers fuel at no cost to stations, telecom firms, and other major consumers — has led customers to abandon existing contracts with transport operators.
Othman stressed that NARTO members, who operate nearly 30,000 trucks nationwide, cannot absorb the cost of hauling fuel without payment. While appealing to Dangote to protect the interests of other players in the sector, he maintained that the association supports the refinery’s success but seeks a level playing field.
Speaking later on Sunday, Othman declined further comment, saying discussions were underway to resolve the dispute.
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Before the scheme’s debut, middlemen bought products from depots or refineries and resold them to retailers and bulk users. The new initiative, introduced last Monday, offers direct supply and has driven down prices: petrol now sells at ₦841 per litre in Lagos and other South-West states, and ₦851 in Abuja, Rivers, Delta, Edo, and Kwara.
According to a statement from Dangote Group, more than 1,000 compressed natural gas-powered trucks will initially serve Lagos, Kwara, Edo, Rivers, Delta, Abuja, and the South-West, with national rollout planned as more vehicles arrive. Independent marketers confirmed deliveries had begun at no logistics cost.
