LAGOS — Private depots in Lagos and surrounding areas were largely deserted yesterday as the Dangote Petroleum Refinery officially began direct petrol supply to marketers, disrupting long-established patterns in Nigeria’s downstream sector.
Investigations by Vanguard revealed that depot operators scaled down operations in anticipation of benefitting from the refinery’s rollout.
A source who preferred anonymity said: “The Dangote Petroleum Refinery has commenced direct supplies to marketers. This is mainly why the depots have recorded skeletal operations.”
Confirming the development, Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, described the market as “destabilized,” with Dangote emerging as the new dominant player.
“The 1,000 trucks that rolled out on Monday have heightened tensions among depot owners and retailers, causing a sharp decline in purchases. For the first time, global oil prices are rising while depot prices are dropping — that is the power of local market forces engineered by Dangote Refinery,” Jeremiah explained.
He added that the refinery’s influence is set to revolutionize the downstream sector, pushing operators toward best practices and competitive pump pricing.
Speaking at a conference marking one year since the refinery rolled out petrol, President/CEO Aliko Dangote stressed that the facility had transformed Nigeria’s energy security and addressed decades of recurring fuel shortages.
“We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era,” Dangote declared.
He admitted that the refinery’s journey was fraught with risks, noting that industry experts and officials repeatedly warned that such mega-refinery projects were reserved for sovereign nations.
“The decision to build the refinery was not easy. If it had gone wrong, lenders would have taken all our assets. But we believed in Nigeria and Africa,” he said.
Dangote dismissed fears that the project was undermining others in the sector, insisting its goal was to strengthen Nigeria and Africa’s energy independence.
“Some thought we were taking food from their tables. That is not true. What we have done is to make our country and continent proud,” he added.
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