The Dangote Refinery has commenced the phased delivery of its 4,000 Compressed Natural Gas (CNG) trucks, marking a key milestone as the company prepares to launch petroleum product distribution operations nationwide this month.
According to the refinery, the initiative is part of a ₦720 billion investment aimed at transforming Nigeria’s fuel distribution landscape, reducing logistics costs, and improving supply efficiency for consumers. The programme is expected to save Nigerians more than ₦1.7 trillion annually and significantly benefit over 42 million Micro, Small, and Medium Enterprises (MSMEs) by lowering energy costs and boosting profitability.
From August 15, Dangote will begin direct delivery of petrol, diesel, and aviation fuel to filling stations, industrial facilities, and other large-scale consumers. The refinery said it plans to meet the nation’s daily demand of 65 million litres of refined products—comprising 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
With average logistics costs currently estimated at ₦45 per litre, the company will absorb more than ₦1.07 trillion annually in free distribution expenses. The investment also covers the establishment of nationwide CNG “mother and daughter” stations and other infrastructure to support the cost-free delivery programme.
The refinery emphasised that the initiative would help eliminate transportation costs for fuel marketers and large-scale consumers, potentially reducing pump prices, curbing inflation, and stimulating economic growth. It is also expected to revive dormant filling stations, create over 15,000 direct jobs in the logistics chain, and reduce cross-border fuel smuggling.
“This strategic programme aligns with our broader commitment to removing logistics bottlenecks, promoting energy efficiency, advancing environmental sustainability, and supporting Nigeria’s economic development,” the company stated.
CEO of Financial Derivatives Company, Bismarck Rewane, dismissed fears that the refinery could become a monopoly, noting that inefficiencies in the sector have been “systemic and long-standing.”
“What Dangote is doing achieves two key objectives: delivering products across the entire country at a uniform price by eliminating bridging costs, and significantly reducing logistics expenses through the use of CNG-powered trucks to reach every corner of the nation.
“In economic terms, middlemen—who typically do not invest—are often viewed as parasitic, extracting margins simply for distributing goods. Dangote is bypassing this layer by directly handling distribution and, notably, providing credit facilities to the retail end of the business,” Rewane said.
Energy expert and Dairy Hills co-founder, Kelvin Emmanuel, described the decision to absorb logistics costs as a “turning point” that could finally allow Nigerians to benefit fully from local refining.
Similarly, energy analyst Ibukun Phillips hailed the plan as “revolutionary,” noting its potential to improve affordability and access, especially in underserved communities.
“Rural consumers, who typically pay more despite earning less, stand to benefit immensely. This could also revive abandoned filling stations and promote equitable distribution,” she said.
