The Dangote Oil Refinery has deployed its first fleet of 1,000 compressed natural gas (CNG)-powered trucks, marking the start of a direct fuel distribution plan long delayed by logistics setbacks and labor disputes.
The rollout is part of a larger project to introduce 4,000 CNG trucks, aimed at cutting Nigeria’s fuel distribution costs by up to ₦1.7 trillion annually.
Unlike traditional diesel trucks, CNG vehicles are expected to reduce transportation costs by 40%, while also lowering carbon emissions—positioning Dangote’s operations in line with global energy transition goals.
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In commemoration of the refinery’s first anniversary of petrol production, officials confirmed to The Punch that the trucks are ready for deployment, with hundreds arriving from China each week.
The project has not been without hurdles. Supply chain delays in China forced a postponement of the original August 15 start date, as only 450 trucks had arrived by early August due to a shortage of shipping vessels.
Beyond logistics, resistance has also come from the Independent Petroleum Marketers Association of Nigeria (IPMAN).
The union accused Dangote of attempting to bypass labor agreements by allowing his drivers to operate outside IPMAN’s rules, sparking a brief strike that disrupted fuel distribution nationwide.
Despite the friction, IPMAN has now signaled readiness to work with the refinery as the rollout begins.
However, some oil marketers continue to express concern that the initiative could cause job losses and structural shifts in Nigeria’s petroleum supply chain.
At the same time, the refinery has announced a reduction in petrol pump prices, with fuel now selling for ₦841 per litre in Lagos and the South West, and ₦851 per litre in Abuja, Edo, Kwara, Rivers, and Delta States. The gantry price was set at ₦820 per litre.
With more trucks expected to land in Nigeria weekly, Dangote’s distribution strategy could reshape the country’s fuel logistics landscape—cutting costs and emissions, while also testing the balance between industrial innovation and labor relations.
Image Credit: Punch Newspapers
