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Private fuel depots across Nigeria, particularly in Lagos, stood eerily quiet today as the Dangote Refinery began large-scale petrol distribution to retail outlets in 12 states, reshaping the nation’s fuel supply chain overnight.
Marketers and retailers, long dependent on private depot networks, redirected their trucks to Dangote’s facilities, lured by competitive pricing. At ₦820 per litre, Dangote’s petrol undercuts Lagos depot prices—WOSBAB and AITEO at ₦836, and MENJ at ₦838. While the per-litre savings appear modest, they translate to substantial gains over thousands of litres, compelling marketers to pivot.
The impact was stark. Depots in Lagos’ Dockyard area, including AITEO and NIPCO, reported no truck activity. Along Satellite Town, MENJ, First Royal, and Rainoil operations ground to a halt. In Coconut, Sahara, Bono, and Integrated depots saw similar inactivity. Beyond Lagos, depots in Calabar and Port Harcourt mirrored this trend, underscoring Dangote’s nationwide reach.
This is a game-changer.Dangote’s scale and pricing strategy are squeezing traditional depots out
Industry experts describe the shift as a textbook case of market displacement, with Dangote leveraging its refining capacity to dominate ex-depot dynamics. “This is a game-changer,” said an industry analyst. “Dangote’s scale and pricing strategy are squeezing traditional depots out.”
Depot operators face shrinking profit margins as demand consolidates around Dangote. Without innovation or strategic partnerships, many risk obsolescence. Analysts warn that sustained price undercutting could accelerate supply chain realignment, potentially forcing depot owners to exit the market.
For consumers, the shift promises lower fuel prices and improved supply stability, offering a silver lining amid the disruption. As Dangote’s influence grows, the future of Nigeria’s fuel market hangs in the balance, with private depots at a critical crossroads.
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