The Dangote Petroleum Refinery has announced plans to begin nationwide distribution of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) starting August 15, aiming to improve fuel accessibility across Nigeria amid growing concerns of scarcity in Lagos and other regions.
This announcement comes at a critical moment as tanker drivers and fuel marketers in Lagos State suspended fuel loading operations on Monday, protesting the newly implemented E-Call Up system by the Lagos State Government. The system requires payment of N12,500 per truck to access loading facilities along the Lekki-Epe corridor a fee the drivers argue is unaffordable.
Tanker Drivers Resist High Fees
The National Association of Road Transport Owners (NARTO) and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have called for the fee to be reduced to N2,500 per truck, citing the excessive cost as a barrier to operations. Yusuf Othman, NARTO President, explained that the suspension was a strategic move to pressure the government into negotiating a fairer rate. “We want an amicable resolution, but if the government insists on N12,500, our members will not load fuel,” he said.
IPMAN Vice President Hammed Fashola echoed concerns over the rushed implementation and lack of stakeholder engagement. He criticized the condition of truck parks built to support the E-Call Up system, calling them inadequate and unsafe for use. Fashola also highlighted that many marketers have their own facilities and questioned the necessity of the compulsory system for all operators.
Government Defends E-Call Up System
The Lagos State Government, through the Ministry of Transportation, defended the E-Call Up system as a necessary measure to regulate truck movements, reduce traffic congestion, and improve safety along the busy Lekki-Epe corridor, home to critical infrastructure such as the Dangote refinery and Lekki Deep Sea Port.
Permanent Secretary Olawale Musa clarified that the N12,500 fee is not a government levy, but a charge for the use of privately funded truck parks and associated facilities. He accused the unions of extorting drivers, claiming they collect up to N41,000 daily per truck without providing adequate services. Musa stressed the importance of adherence to the system to avoid chaotic traffic conditions reminiscent of the Apapa gridlock.
Dangote Refinery’s New Distribution Initiative
In response to ongoing distribution challenges, Dangote Petroleum Refinery disclosed plans to deploy 4,000 new Compressed Natural Gas (CNG)-powered tankers and establish dedicated CNG fueling stations to enhance delivery efficiency. The company’s initiative aims to cut logistics costs, ease bottlenecks, and support sectors including telecoms, aviation, and manufacturing.
Dangote also announced a credit scheme targeting bulk buyers of 500,000 litres or more, intended to revitalize filling stations, alleviate inflationary pressures, stimulate small business growth, and align with the Nigerian government’s economic reform agenda.
Potential Impact and Next Steps
The refinery’s move to handle fuel distribution directly could disrupt revenue streams linked to the E-Call Up truck parks, complicating negotiations between stakeholders.
Meanwhile, fears of imminent fuel scarcity loom large if the conflict between tanker operators and Lagos authorities remains unresolved. Both parties have expressed willingness to negotiate, with calls for a collaborative dialogue to resolve differences without disrupting Nigeria’s fragile fuel supply chain.
