OGEJOURNAL Menu

Marketers Set to Engage Dangote Refinery on Direct Fuel Distribution Plan

Members of the Major Energies Marketers Association of Nigeria (MEMAN) are preparing to engage Dangote Petroleum Refinery to gain clarity on its plan to supply fuel directly to filling stations across the country. The refinery’s direct distribution scheme is scheduled to start on August 15 with 4,000 new Compressed Natural Gas (CNG) trucks.

Clement Isong, Executive Secretary of MEMAN, said during a recent webinar, “At this point, we are watching the market, trying to understand it… We need to understand exactly where it impacts and what it impacts before we can have some clarity.” He emphasized the importance of discussions with Dangote, the Nigerian Midstream and Downstream Petroleum Regulatory Authority, and other stakeholders before fully responding to the plan.

Isong also acknowledged the innovative use of CNG trucks in fuel distribution, calling it “a good development,” while noting the current lack of infrastructure. “CNG is a policy of the government… a lot of planning has to be done to be able to implement it.”

On concerns over dominance and anti-competitive behavior in the sector, Isong said, “It is the job of the regulators to consistently measure what is innovation… and where the risk of dominance begins to play a negative role.”

The Dangote refinery’s move aims to shake up the fuel distribution market, with MEMAN cautiously watching to protect the interests of marketers and consumers alike.