Dangote Blames Union-Imposed Truck Fees for Rising Fuel Prices

The management of Dangote Refinery has attributed recent increases in fuel prices across parts of Nigeria to charges imposed by transport unions on truck drivers. The company explained that these extra costs, which are outside the refinery’s control, have created distortions in the petroleum distribution chain, making petrol more expensive by the time it reaches filling stations and consumers.

According to the refinery, the practice of unions imposing compulsory charges on truck operators has not only raised logistics costs but also undermined efforts to stabilize the supply of refined products in the local market. This revelation comes just weeks after the refinery resumed large-scale distribution of petrol and other petroleum products, a move initially celebrated by Nigerians who had anticipated a reduction in fuel prices and the end of prolonged scarcity.

Industry insiders confirmed that while the Dangote Refinery sells petrol at competitive rates, by the time transport unions enforce their levies on tanker drivers, the retail price of fuel becomes inflated. The unions reportedly charge truck operators for access, permits, and loading rights, creating an additional financial burden that is ultimately passed down to consumers at the pump.

Dangote Industries, in a statement, noted that the company remains committed to making refined products affordable and available nationwide. However, it emphasized that the persistence of such union practices poses a major challenge. The refinery also called on regulatory agencies and government authorities to intervene by ensuring that petroleum product distribution is not sabotaged by avoidable third-party costs.

“We have consistently ensured that our refinery sells at the most affordable rates, but the additional charges imposed by unions on truck operators are significantly affecting distribution costs. These charges are not sanctioned by the refinery and are beyond our control, yet they are being transferred to end users, leading to unwarranted price increases,” the statement read.

Fuel marketers and members of the Independent Petroleum Marketers Association of Nigeria (IPMAN) have also expressed concerns over the rising costs of transporting petrol from the refinery to various states. Some marketers disclosed that they pay almost double the normal transport charges due to levies demanded by truck unions, a situation that discourages wider product distribution, particularly to remote areas.

Energy experts have described the development as a serious bottleneck that could undermine the refinery’s capacity to deliver on its promise of affordable petroleum products for Nigerians. They argue that while the refinery represents a transformative project for the oil and gas sector, the distribution and retail end of the value chain remains heavily exposed to inefficiencies and exploitation by vested interests.

In recent weeks, Nigerians have expressed frustration over fluctuating pump prices despite the commencement of product supplies from the Dangote Refinery. Many had expected prices to stabilize or even reduce significantly, given that the refinery has eliminated the need for expensive fuel imports. However, the lingering involvement of middlemen, transport unions, and weak regulatory enforcement has continued to complicate the situation.

Stakeholders in the downstream oil sector have urged the Federal Government to urgently intervene. According to them, unless union-imposed charges are curbed, Nigerians may not fully enjoy the benefits of the refinery’s operations. They also called for stronger collaboration between the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), security agencies, and state governments to monitor distribution activities and protect consumers from exploitation.

Civil society groups have joined the debate, stressing that high fuel prices have far-reaching implications for ordinary Nigerians. Since petrol remains a critical commodity influencing transportation, food prices, and inflation, any artificial increase in pump prices directly worsens the economic burden on households. Activists have demanded urgent action from government to protect the public interest and safeguard the refinery’s role in stabilizing the economy.

Despite these challenges, the Dangote Group reaffirmed its commitment to transparency, efficiency, and fair pricing. The company stated that it would continue to work with stakeholders, including marketers and regulatory bodies, to ensure that Nigerians benefit from the massive investment in refining capacity.

Industry watchers believe that resolving the issue of union-imposed charges is critical to unlocking the refinery’s full potential. With the plant’s capacity to meet both domestic demand and export requirements, they argue that Nigeria has a unique opportunity to finally end decades of dependence on imported refined products. However, this can only be achieved if systemic bottlenecks in the distribution chain are effectively dismantled.

The refinery has also hinted at the possibility of engaging directly with relevant authorities to create alternative, union-free distribution models that will ensure petrol reaches filling stations at fair prices. While such a move could provoke resistance from entrenched interests, many believe it may be the only way to protect Nigerians from unjustified costs.

As the debate continues, Nigerians are watching closely to see whether the Federal Government will rise to the occasion and confront the challenge head-on. For many, the refinery represents a beacon of hope for economic relief, but without decisive action to curb exploitation in the downstream sector, that hope risks being eroded by avoidable obstacles.