The Dangote Petroleum Refinery’s new requirement that oil marketers must purchase a minimum of 500,000 litres of petrol to qualify for its free delivery scheme has sparked criticism across Nigeria’s downstream petroleum sector.
The policy, which translates to a minimum outlay of about ₦410 million at the refinery’s gantry price of ₦820 per litre, equivalent to 11 trucks of 45,000 litres each, was confirmed by a senior refinery official who noted that the free delivery offer only applies to bulk buyers that meet the benchmark. Independent petroleum marketers have raised concerns, describing the condition as unrealistic for most operators.
The National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Chinedu Ukadike, said members are struggling to meet the threshold and are now exploring collective purchasing to avoid a situation where middlemen take advantage of the scheme.
“Yes, it is true. We have to buy a minimum of 500,000 litres. That requirement has not been easy to follow,” Ukadike admitted, warning that the condition could revive the dominance of wholesalers in the supply chain.
Energy analyst Olatide Jeremiah, Chief Executive Officer of Petroleumprice.ng, also criticised the threshold, saying the requirement was far beyond the reach of most filling station owners.
“At ₦820 per litre, marketers must raise over ₦400 million to qualify. How many operators can afford that? Many will have no choice but to rely on wholesalers,” he argued, adding that the policy risks undermining the refinery’s stated aim of reducing costs and cutting out middlemen.
The free delivery scheme has also faced pushback from transport operators, with the President of the National Association of Road Transport Owners (NARTO), Yusuf Othman, warning that it undermines existing agreements. Othman said members who own more than 30,000 trucks cannot provide distribution services for free, noting that many acquired vehicles through bank loans backed by contracts with fuel buyers. He further argued that the initiative contravenes provisions of the Petroleum Industry Act (PIA).
The Dangote Refinery, which began commercial operations last year with a capacity of 650,000 barrels per day, is Africa’s largest and has been hailed as a potential game-changer for Nigeria’s energy landscape.
Earlier this month, it launched its free delivery initiative, backed by 1,000 compressed natural gas-powered trucks, and signed partnerships with several major marketers, including Conoil Plc, Eterna Plc, Golden Super, Nepal Energies, Kifayat Global Energy, and Riquest & Gas. However, smaller operators fear the high delivery threshold could sideline them, leaving wholesalers and depot operators to retain control of the fuel supply chain.
Industry analysts warn that unless the policy is reviewed to allow per-truck loading, the refinery risks alienating smaller players and inadvertently entrenching middlemen in the market.
