Oil marketers are urging Dangote Refinery to adopt a more inclusive distribution approach, citing concerns that the company’s new fleet of 4,000 CNG-powered trucks may not be enough to guarantee nationwide supply. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) is leading the charge, with its national president, Billy Gillis-Harry, emphasizing the need for Dangote to work with existing downstream infrastructure to ensure seamless and effective supplies, particularly in areas where the company’s trucks may not be able to reach.
Key Concerns:
– Limited Reach: Dangote’s trucks may not be able to access all areas of the country, particularly rural or hard-to-reach locations.
– Inadequate Supply: The new fleet alone may not be sufficient to meet nationwide demand, potentially leading to supply chain disruptions.
– Exclusion of Existing Infrastructure: Dangote’s direct distribution model may sideline existing depot owners and disrupt the decades-old distribution network.
Potential Impact:
– Job Losses: The shift to CNG-powered trucks and direct distribution may lead to job losses among truck drivers and other industry stakeholders.
– Monopoly Concerns: PETROAN has expressed concerns that Dangote’s dominance in the market could lead to a monopoly, potentially resulting in higher prices and reduced competition.
Dangote’s Response:
– Investment in CNG Infrastructure: Dangote is investing in CNG refueling stations and mobile CNG tankers to support its distribution network.
– Credit Facilities: The company is offering credit facilities to customers who purchase large volumes of fuel, aiming to support small and medium-sized enterprises.
