The Dangote Petroleum Refinery on Monday commenced the first phase of its direct fuel distribution scheme with the rollout of more than 1,000 Compressed Natural Gas (CNG)-powered trucks across key states in Nigeria.
The initiative, which coincides with the refinery’s first anniversary of petrol production, is designed to reduce logistics costs, stabilise pump prices, and ease inflationary pressures.
According to the company, the deployment will immediately bring down the gantry price of petrol to N820 per litre, with corresponding retail pump prices set at N841 per litre in Lagos and other South-West states, and N851 per litre in Abuja, Rivers, Delta, Edo, and Kwara states.
Dangote had ordered 4,000 CNG-powered trucks from China as part of a long-term plan to strengthen fuel logistics. While initial deployment scheduled for August 15 was delayed due to shipping bottlenecks, over 1,000 trucks have now arrived in Nigeria with additional consignments arriving weekly.
A senior Dangote official confirmed that trucks are arriving in hundreds every week, noting that the company is targeting 10,000 CNG-powered trucks by the end of the year.
The refinery projects that the transition to CNG logistics could save the Nigerian economy over N1.8 trillion annually by cutting distribution costs.
In addition, the initiative is expected to benefit more than 42 million micro, small, and medium enterprises (MSMEs) by lowering energy costs and improving margins.
The company said the programme represents an investment of over N720 billion with direct benefits including the revitalisation of dormant filling stations and the creation of thousands of jobs for truck drivers, fuel attendants, and station managers.
Dangote added that its fuel supply has already stabilised prices for petrol, diesel, and cooking gas while eliminating scarcity.
It also highlighted its role in skills transfer, with over 570,000 direct and indirect jobs created and training opportunities for Nigerian engineers and technicians.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) confirmed its readiness to receive Dangote trucks at retail outlets nationwide.
IPMAN President Abubakar Shettima said the new pricing structure would bring relief to consumers.
He stated that the price reduction is good and will be implemented as announced because all that matters is the welfare of the masses.
However, the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) criticised the initiative, describing the price cut as a “Greek gift” aimed at stifling competition. The group alleged Dangote was selling petrol to international traders at cheaper rates than to local offtakers.
In response, Dangote dismissed the allegations and accused vested interests of attempting to frustrate its CNG logistics programme, pointing to a recent hike in CNG prices by NIPCO.
The company reiterated its commitment to rolling out 10,000 trucks despite the challenges.
As distribution expands nationwide, Dangote said the scheme would ensure affordable, high-quality, locally refined fuel reaches consumers directly, strengthen energy security, and support inclusive economic growth.
