The air is filled with suspense and anxiety as Nigerians, especially stakeholders in the energy sector, as Dangote Refinery starts the distribution of Premium Motor Spirit, also known as petrol across the nation, with its Compressed Natural Gas trucks, today, Monday, September 15.
JESNews reports that at the weekend, hundreds of Dangote refinery’s trucks had already entered Nigerian roads from Lekki-Epe Expressway, Lagos to begin the process of loading fuel for onward transportation to retail outlets nationwide.
This came after the refinery announced that it invested N720 billion to import 4,000 compressed natural gas trucks; however, reports had it that around 1000 have been delivered.
Dangote Group said the initiative is aimed at bringing down retail price of fuel and is estimated to save Nigeria N1.7 trillion annually in fuel distribution costs.
And as the fuel distribution by Dangote trucks kicks off today, the Nigeria Union of Petroleum and Natural Gas, NUPENG, described the firm’s fuel distribution initiative as a Greek gift to Nigerians.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) also said Dangote’s free delivery cost for fuel distribution nationwide is misleading.
But contrary to DAPPMAN and NUPENG’s stand, the Independent Petroleum Marketers Association of Nigeria has thrown its weight behind the initiative, imploring members to register with Dangote Refinery.
Speaking ton the development, Professor Emeritus of Petroleum Economics, Wumi Iledare, said Dangote’s move into CNG trucks is a bold step and may reduce costs;but, he raised some pertinent worries.
“Dangote’s move into CNG trucks is bold and could lower costs, cut emissions, and deepen gas use. Vertical integration is not the issue— it’s common worldwide.
“The concern is dominance without checks. With Dangote already controlling refining, transport dominance risks stifling competition. Without a strong regulator, monopoly fears are real.
“Safety is another worry. Nigerians still mourn Ruth, Phyna’s sister, killed by a Dangote truck in Auchi. Add to that is the likely traffic gridlock from Lekki–Epe to highways nationwide.
“The way forward is clear: encourage innovation, but strengthen regulation, enforce safety, and protect fair competition. Only then can convenience outweigh the disruptions,” he said.
