Private Depots Deserted as Dangote Refinery Begins Direct Fuel Supplies!

Sele Media Africa
www.selemedia.org
Reported by Amos Dachung – Sele Media Africa Reporter
September 17, 2025

Private Depots Deserted as Dangote Refinery Begins Direct Fuel Supplies

There are increasing reports that private fuel depots across several Nigerian cities are being left idle, as Dangote Petroleum Refinery’s direct fuel supply strategy begins to reshape the downstream petroleum market.[1]

What’s Going On

• Dangote Refinery has initiated direct distribution of petrol (PMS) and diesel to large-scale users—manufacturers, telecom companies, aviation operators—and also to retail stations, bypassing many of the traditional middlemen and depot owners.[2]
• To facilitate this, the refinery acquired a large fleet of 4,000 compressed natural gas (CNG)-powered tankers and is establishing more daughter‑booster CNG stations for smoother delivery logistics.[2]
• The refinery is also offering free logistics support for certain classes of buyers, which is reducing the costs of transportation and the incentives for marketers to rely on private depots.[2]

Effects on Private Depots

• Depots in areas like Lagos (Dockyard, Satellite Town, Coconut) are reportedly seeing little to no truck traffic as marketers now prefer loading directly from Dangote’s facility.[1]
• Many depot operators say their tanks are sitting idle, with large volumes of petrol in storage but fewer buyers.[3]
• Some depots have already slashed prices below Dangote’s rates in attempts to retain customers.[4]

Context & Implications

• This shift follows Dangote Refinery’s strategy to reduce dependency on importers and minimize the cost of fuel distribution in Nigeria.[5]
• The downstream sector appears to be undergoing major structural change: fewer intermediaries, greater direct supply, potentially lower fuel prices for end‑users.[2]
• Depot owners face challenges to remain relevant unless they adapt—either by negotiating new roles in the supply chain or by innovating in logistics, storage, or quality of service.[3]

If you want, I can pull up statements from Dangote or depot owners for your story—would you prefer that?

Citations:

1. Nigerian Eye: www.nigerianeye.com/2025/09/private-depots-abandoned-as-dangotes.html?utm_source=chatgpt.com
2. Daily Post Nigeria: dailypost.ng/2025/06/15/dangote-refinery-dumps-marketers-begins-direct-supply-of-petrol-diesel-to-heavy-users/?utm_source=chatgpt.com
3. hallmarknews.com: hallmarknews.com/over-80-of-fuel-depots-shut-down-as-dangote-disrupts-market/?utm_source=chatgpt.com
4. Legit.ng – Nigeria news.: www.legit.ng/business-economy/energy/1662278-depot-owners-slash-petrol-prices-dangote-refinery-sets-market-rate/?utm_source=chatgpt.com
5. Energy News: energynews.oedigital.com/energy-markets/2025/06/16/nigerias-dangote-refining-company-to-supply-fuel-directly-to-local-traders?utm_source=chatgpt.com

About The Author

David Joshua Oliver

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Oliver David Joshua is a seasoned media professional with a passion for impactful journalism and strategic leadership. As the Managing Director and Editor-In-Chief of Sele Media Africa, he oversees the organization’s editorial vision, ensuring high standards of truth, balance, and bold reporting. Known for his sharp editorial eye and commitment to excellence, Oliver plays a key role in shaping the voice of Sele Media Africa across the continent. His leadership continues to drive innovation, credibility, and growth in Africa’s digital media space.

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