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Major marketers to meet Dangote, regulators over direct supply scheme
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MEMAN says CNG truck rollout promising but infrastructure is lacking
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Refineries’ new distribution strategy set to begin August 15 with 4,000 trucks
Members of the Major Energies Marketers Association of Nigeria (MEMAN) have announced plans to hold discussions with Dangote Petroleum Refinery to understand the implications of its new fuel distribution strategy across Nigeria.
Speaking during a webinar on Thursday, MEMAN Executive Secretary, Mr Clement Isong, said marketers are closely monitoring Dangote’s plan to supply petroleum products directly to filling stations nationwide beginning August 15.
Isong said the association would also engage the Nigerian Midstream and Downstream Petroleum Regulatory Authority and other key stakeholders to fully understand the scope, pricing model, and potential impact of the direct distribution scheme.
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He noted that while media reports had highlighted the initiative, the marketers required clarity on the distribution mechanics and possible regulatory issues such as equalisation policy and regional price differences.
“It would be irresponsible of us to take a position without first understanding how the initiative works, whether there is equalisation or uniform pricing, and what the long-term market implications are,” Isong said.
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Isong acknowledged that the use of Compressed Natural Gas (CNG)-powered trucks for product distribution, as planned by Dangote, was a positive development, but warned that inadequate infrastructure remains a key limitation.
He said bold players like Dangote are leading innovation, but successful implementation would depend heavily on building out the necessary CNG infrastructure nationwide.
On the broader issue of market dominance, he said it was the duty of regulators to draw the line between innovation and anti-competitive behaviour, noting that MEMAN supports full deregulation and open market competition to encourage innovation in the sector.
The Dangote Petroleum Refinery on Sunday unveiled plans to commence direct distribution of fuel using 4,000 brand-new CNG trucks starting from August 15, 2025. The move is seen as a major shift in the downstream oil sector, potentially bypassing traditional supply channels.
