Depot Activity Slows as Dangote Begins Direct Fuel Supply

Operations at several private fuel depots in Lagos and nearby states came to a halt as the Dangote Petroleum Refinery began direct distribution of petrol to marketers. Depot operators are reportedly holding back purchases in anticipation of more favorable supply options.

Industry monitors said the entry of Dangote into active supply is affecting pricing and demand. On Monday, the refinery rolled out 1,000 trucks, triggering a noticeable drop in depot prices despite rising global oil costs.

At an event marking one year since the refinery’s petrol production began, Aliko Dangote said the project was a response to decades of fuel scarcity in Nigeria. He said many believed the refinery would not succeed, and that he risked losing all his assets if it failed.

 Marketers and analysts say the new supply chain may create competition and improve fuel availability nationwide.