The Major Energies Marketers Association of Nigeria (MEMAN) has announced plans to engage with Dangote Petroleum Refinery and relevant government agencies to better understand the logistics and implications of Dangote’s recently announced direct fuel distribution strategy, set to begin nationwide on August 15, 2025.
Speaking during a webinar hosted by MEMAN on Thursday, the association’s Executive Secretary, Clement Isong, emphasized the need for in-depth discussions before marketers can respond or take a position on the refinery’s move to supply fuel directly to filling stations using Compressed Natural Gas (CNG)-powered trucks.
“We have read the news, but now we are observing the market and trying to understand the finer details. It would be premature and irresponsible to make any assumptions without proper clarity,” Isong stated. He added that MEMAN would engage not just with Dangote Refinery but also with the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and other key stakeholders to evaluate the initiative’s potential impact on fuel pricing, supply chain dynamics, and the broader downstream sector.
A key point of concern raised by Isong was whether the distribution plan involves any form of price equalisation, which historically has ensured uniform petrol prices across Nigeria. “We’re not clear whether this means the same price everywhere in the country,” he said, noting that understanding the regulatory and market implications would be essential before MEMAN could make informed decisions or raise objections.
Despite the uncertainty, MEMAN welcomed certain aspects of the new model, especially the use of CNG-powered trucks for fuel distribution. Isong described it as a bold and innovative step, aligning with the federal government’s current CNG transition policy. However, he pointed out that the supporting infrastructure for CNG remains limited, which could challenge the sustainability and scalability of the plan.
“CNG is a government policy in implementation, but we do not yet have enough infrastructure in place,” Isong said. “Companies that can make it work for them should do so—it’s an opportunity.”
Addressing concerns around possible market dominance and anti-competitive practices, Isong acknowledged the delicate balance regulators must maintain. He stated that MEMAN has always advocated for deregulation and open market competition, which they believe encourages innovation and ultimately benefits the consumer.
“The role of the regulator is to define where innovation stops and where dominance begins to have a negative effect. We must help the regulators find that balance,” he added.
Dangote Refinery, in a statement earlier this week, confirmed that it would begin direct distribution of petroleum products to retail outlets across Nigeria using a fleet of 4,000 newly acquired CNG-powered trucks. The company stated that the initiative aims to eliminate inefficiencies, reduce logistics costs, and ensure stable and affordable fuel prices across all regions.
