Private Depots Deserted as Dangote Refinerys Direct Fuel Supply
Private fuel depots across Lagos and other states have been left nearly empty following the Dangote Petroleum Refinery’s launch of direct distribution of petrol to retailers and heavy users. Depot operators say that the offer of petrol at ₦820 per liter from Dangote has undercut prices from private depots, prompting truck drivers and marketers to bypass them entirely.
Depot areas in places like Dockyard, Satellite Town, and Coconut in Lagos reported little or no activity, with truck lines disappearing. The shift is credited to Dangote’s pricing strategy and its newly expanded logistics capabilities, including plans to use compressed natural gas (CNG)-powered tankers for distribution.
As Dangote ramps up its distribution network, many depot owners and import-dependent marketers are under pressure. Some are being forced to cut prices and reexamine their business models, while others fear they may need to exit the market unless they adapt. Industry insiders warn that depots may become obsolete if Dangote’s dominance continues.
For consumers, this development could mean better fuel availability and lower pump prices. Analysts suggest that as Dangote eliminates more layers in the supply chain, efficiencies will improve and the overall cost of petrol could drop. However, concerns remain about whether price savings will be passed down fully to end users.
