Nigeria may face petroleum product scarcity with consequential price hikes that could push pump prices to around N1,000 per litre as tension in the Middle East and a brewing tanker crisis pose fresh tension.
While Dangote Refinery on Sunday unveiled the operation of 4,000 new compressed natural gas (CNG)-powered fuel tankers, a development which may render many existing operators and ageing articulated vehicles redundant, the Nigerian Association of Road Transport Owners (NARTO) announced its withdrawal from lifting petroleum products from the facility, effective today over face-off with Lagos State Government.
These come as Nigeria’s crude oil producers exported approximately N12.96 trillion products in the first quarter (Q1) of 2025.
The development, which is a validation of The Guardian’s report to the effect that the country would have lost about $5.7 billion to oil production shortfall in the first five months of the year, shows that local refineries would need to import more to survive as well as face price shocks and logistic disruptions due to geopolitical tensions at the international market.
The export value represents a N2.53 trillion or 16.34 per cent reduction when compared to the N15.49 trillion value of crude exported in Q1 2024. It is also N828 billion or 6.01 per cent short of Q4 2024’s N13.78 trillion figure.
Dangote Petroleum announced an entry into fuel distribution, which had originally been controlled by private tanker owners, especially NARTO.
The hauling arrangement, an inside source in NARTO disclosed would affect its operations.
Dangote disclosed that the move would begin on 15th August 2025.
The 650,000 barrels per day refinery is expected to distribute motor spirit and diesel to marketers, petrol dealers, manufacturers, telecom firms, aviation companies and other large consumers across the country with free logistics support.
According to the company, to ensure the successful rollout of the initiative, the company procured 4,000 brand-new CNG-powered tankers.
It disclosed that the phase would continue over an extended timeframe, with additional investments in CNG daughter booster stations and a supporting fleet of over 100 CNG tankers across Nigeria to ensure uninterrupted distribution.
Describing the move as “strategic” and part of a broader commitment to eliminating logistics costs, promoting energy efficiency, supporting environmental sustainability and boosting Nigeria’s economic development, the company said it was a dedication to enhancing fuel availability and affordability, in alignment with national efforts to stabilise the economy and uplift the welfare of Nigerians. Under the initiative, all petrol stations sourcing PMS and diesel from Dangote Refinery would benefit from the enhanced logistics infrastructure.
Also, the refinery said it would extend a facility to customers purchasing a minimum of 500,000 litres, allowing access to an additional 500,000 litres on credit, repayable within two weeks under a bank guarantee arrangement.
(Guardian)
