The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) has cautioned that Dangote Refinery’s plan to bypass existing marketers and supply fuel directly to end-users could disrupt the industry, lead to product scarcity, and collapse established supply chains.
NOGASA President Bennett Korie, speaking at the association’s AGM in Abuja, urged Dangote to reconsider and engage stakeholders. He warned that combining refining, distribution, and retail under one company, as NNPC once did, is unsustainable and risks repeating past failures.
Dangote Group, however, defended the move, stating it would cut logistics costs and improve nationwide supply. The company recently acquired 4,000 CNG-powered trucks for direct distribution starting August 15, projecting annual savings of over ₦1.7 trillion for the economy.
Korie warned that excluding traditional marketers could displace thousands of workers across over 50,000 filling stations. He called on President Bola Tinubu to intervene and ensure fair industry practices. “Refine the product, sell to depots, and let marketers distribute,” he advised.
Billy Gillis-Harry, President of the Petroleum Products Retail Outlet Owners Association (PETROAN), also raised concerns, warning that centralizing fuel supply under one company could result in higher prices and reduced competition.
He likened the situation to the cement industry, where similar control led to massive price hikes. “We used to buy cement for ₦115; now it’s over ₦10,000,” he said.
Depot fuel prices have already surged to ₦870 per litre, with some marketers reportedly losing up to ₦80 per litre due to price volatility.