Dangote Refinery’s Free Fuel Delivery Disrupts Market, NARTO Raises Alarm

The launch of the Dangote Refinery’s direct fuel distribution scheme has triggered major shifts in Nigeria’s downstream sector, as bulk fuel consumers and filling stations dump middlemen suppliers for Dangote’s free delivery.

President of the National Association of Road Transport Owners (NARTO), Yusuf Othman, disclosed this during a live programme on TVC News. He criticised Dangote’s free fuel delivery to filling stations, telecom companies and bulk users, warning that his members’ contracts and investments are now under threat.

According to him, NARTO members operate over 30,000 trucks financed through bank facilities, many based on long-term agreements with fuel buyers.

“We have members who signed agreements with companies. Some are informal, others formal, and we used these formal agreements to secure loans for trucks. Now these contracts are at risk because a big player is supplying directly for free. That makes our trucks redundant and many members are worried,” Othman said.

He added that the practice violates Section 212 of the Petroleum Industry Act (PIA), urging the Federal Government and the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene. Othman appealed to Dangote to consider the survival of other operators, stressing that stakeholders want the refinery to succeed but not at the expense of industry balance.

When contacted on Sunday, Othman declined further comments, hinting at a possible ceasefire to allow negotiations.

Before this scheme, middlemen purchased fuel from refineries or depots and resold to bulk users. The new model allows buyers to apply directly to Dangote for supplies at no extra cost, cutting out distributors.

The refinery officially launched its logistics-free distribution last Monday, deploying over 1,000 compressed natural gas-powered trucks to Lagos, Ogun, Ondo, Oyo, Osun, Ekiti, Edo, Delta, Rivers, Kwara and Abuja.

The Dangote Group also announced a reduction in petrol pump prices. Fuel now sells at N841 per litre in Lagos and other South-Western states, while Abuja, Rivers, Delta, Edo and Kwara retail at N851 per litre.

Independent Petroleum Marketers Association of Nigeria (IPMAN) President, Abubakar Shettima, confirmed to Newsmen that deliveries had begun.

“Dangote has started free delivery. Trucks are already discharging products in Lagos, Ondo, Ogun, Ibadan, and other parts of the Western Zone. My members are very pleased, as prices are dropping from N865 to N841 once the trucks arrive,” Shettima said.

The development marks a turning point in Nigeria’s fuel supply chain, reshaping competition among distributors while promising lower pump prices for consumers.