As the Dangote refinery launched its direct fuel distribution scheme, bulk fuel consumers and filling stations are dumping their middlemen suppliers for Dangote’s free delivery.
The President of the National Association of Road Transport Owners, Yusuf Othman, stated this during a live programme on TVC News. Othman, who condemned the free delivery of fuel to filling stations, telecom companies, and other bulk users, said buyers have now jettisoned the contracts signed with his members to receive free delivery from Dangote.
The NARTO president explained that his members have up to 30,000 trucks, and cannot do the business of fuel distribution free of charge.
“We have our members who have signed agreements with so many companies.
Some are even informal agreements, but we have formal agreements signed, and by that, we used those formal agreements to collect bank facilities to buy trucks and serve those companies. But now, those agreements are at stake because a big brother is coming to supply directly to them, not minding the fact that they have signed agreements with us.
“Though they have not officially informed us, and it’s not officially confirmed, the information available to us showed that this is ongoing, and as such, our trucks will not be used again. That is one of the reasons why so many of our members are complaining. If I sign an agreement with you for service by virtue of my 10 trucks, and somebody somewhere comes to do the same thing for you for free, it’s a very delicate situation.
“So, that is one of the reasons why we are calling on the Federal Government, especially the NMDPRA, which has told all of us clearly that this act is an illegal act by virtue of Section 212 of the PIA,” he said.
The NARTO boss appealed to Dangote to consider the survival of other players in the sector, saying everybody wants the refinery to succeed.
Contacted for clarifications on Sunday, Othman told our correspondent that he would no longer speak on the matter. He informed our correspondent that there was a plan for a ceasefire for the sake of negotiations.
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Before Dangote asked filling stations and bulk buyers to register for direct fuel delivery, some middlemen bought from refineries or depot owners and resold to bulk users. However, the Dangote free fuel distribution scheme appears to have halted the old order, as the buyers now apply for direct supply to save costs.
The Dangote refinery flagged off its logistics-free distribution scheme last Monday. Over 1,000 compressed natural gas-powered trucks are to be deployed to Lagos, Ogun, Ondo, Oyo, Osun, Ekiti, Edo, Delta, Rivers, Kwara, and Abuja.
The scheme also came with a slash in fuel prices. Lagos and other South-Western states will see fuel retailing at N841 per litre, while Abuja, Rivers, Delta, Edo, and Kwara states will sell at N851 per litre.
“The first phase of the deployment will cover the Federal Capital Territory, Lagos, Kwara, Delta, Edo, Rivers, and South-West states, with nationwide expansion planned as additional trucks are delivered,” the Dangote Group said in a statement.
Marketers on Friday confirmed that Dangote Refinery’s compressed natural gas-powered trucks have started delivering fuel to their stations at no cost to them. The National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Shettima, confirmed this to our correspondent in an interview.
“Dangote has started the free delivery. Already, the trucks have started moving. In most parts of the Western Zone, they have already started discharging their products, since it is closer to Lagos. So the plan is moving seriously.
“And my marketers are very pleased with the development. I can confirm to you that my members have started receiving the trucks in Lagos, Ondo, Ogun, Ibadan, and others,” Shettima stated.
Speaking on the price, the IPMAN boss explained that prices would drop from N865 to N841 the moment petrol gets to the stations under the new arrangement
