By Ufoh Awele Anthony

Copyright independent

Anthony Ufoh

The Dangote refinery, the largest in Africa, has begun direct distribution of petroleum products, according to the company’s management, and this is hurting the operations of private depots, which are already experiencing a decline in business.

According to reports, the operators of the depots are also expecting to benefit from the free supplies and that accounts for the low operations in these facilities.

A source that pleaded to be anonymous said, “The Dangote Petroleum Refinery has commenced direct supplies to marketers. This is mainly why the depots have recorded skeletal operations.”

Chief Executive Officer of Petroleumprice.ng, Olatide Jeremiah, stated that, “The downstream petroleum sector is currently destabilised as the new market leader (Dangote) is calling the shots.

“The 1,000 trucks rolling 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 and depot prices are dropping, that is the power of local market forces engineered by Dangote Refinery. By and large, this revolution will drive the industry to embrace best practices and drive prices at the pump,” he said.

Meanwhile, speaking at a conference to mark the first anniversary of the launch of petrol from the 650,000 barrels-per-day refinery on Monday, the President/Chief Executive, Dangote Petroleum Refinery, Aliko Dangote, said the refinery has impacted Nigeria’s energy security.

Dangote highlighted that Nigerians have endured persistent fuel queues since 1975. However, this issue has been steadily resolved since the refinery began rolling out petrol on September 15, 2024.

“We have been battling fuel queues since 1975, but today Nigerians are witnessing a new era,” he said.

Acknowledging the numerous challenges the refinery has faced since its inception, Dangote emphasised the company’s unwavering commitment to Nigeria and Africa.

“The journey has been challenging because we sought to transform the downstream sector in Nigeria. Some believed we were taking food from their tables, which simply isn’t true.

“What we have done is to make our country and continent proud. Previously, only two African countries were not importing petrol, but regrettably, they have since resumed imports. This is detrimental to Africa,” he added.