The Dangote Group has announced that it will begin direct delivery of refined petroleum products across Nigeria starting August 15, 2025.
This move follows a massive ₦720 billion investment in 4,000 Compressed Natural Gas (CNG)-powered trucks, signaling a strategic shift in the country’s downstream fuel distribution landscape.
According to a company statement, the CNG truck fleet—procured through Dangote Petroleum Refinery and Petrochemicals—is expected to serve filling stations, industrial hubs, and other bulk fuel consumers nationwide.
The initiative, according to Punch’s report, is part of Dangote’s broader push to reduce transportation costs and enhance supply chain efficiency while supporting Nigeria’s transition to cleaner energy.
The company revealed that the new distribution model will support Nigeria’s daily demand of 65 million litres of refined products, including 45 million litres of petrol (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel. By bypassing third-party marketers, Dangote aims to eliminate longstanding bottlenecks in fuel delivery.
The trucks—estimated to be 40% more cost-efficient than traditional diesel tankers—will significantly cut logistics costs, which currently average ₦45 per litre. Over a year, the refinery is projected to save over ₦1.07 trillion through direct deliveries.
In addition to truck acquisitions, the company is developing a nationwide network of CNG “mother and daughter” stations to support its cleaner energy logistics framework.
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As the refinery now operates at approximately 85% of its 650,000 barrels-per-day capacity—ranking among the largest single-train facilities globally—this integration into fuel distribution is expected to further streamline operations and reduce retail fuel prices.
While the rollout promises major benefits for consumers and bulk fuel buyers, it has sparked concern among industry stakeholders.
The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has warned that Dangote’s model could edge out smaller distributors and lead to job losses, potentially consolidating control of the market under one dominant player.
Despite the controversy, Dangote’s direct distribution strategy marks a major step toward self-reliance in Nigeria’s energy supply chain, aligning with the country’s energy transition goals and reshaping the future of fuel logistics.
Image Credit: Fresh Angle
