Dangote Refinery Launches CNG Truck Fleet to Begin Nationwide Petrol Distribution
The Dangote Refinery and Petrochemicals is set to officially roll out its fleet of Compressed Natural Gas (CNG) trucks today, marking the start of nationwide distribution of Premium Motor Spirit (PMS).
In August, the company announced the arrival of the first batch of its 4,000 CNG-powered trucks, which are part of a major logistics initiative originally scheduled to begin operations on August 15.
Speaking on Sunday during a courtesy visit by officials from the AfricaRice Centre at his office in Lagos, Aliko Dangote emphasized that the move to directly distribute fuel is aimed at reducing reliance on third-party transporters. He described the decision as not just strategic, but a necessary step for national progress.
Last week, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) criticized the refinery for allegedly offering more competitive prices to international buyers while quoting higher rates to local distributors. The association also claimed that the refinery’s contribution currently meets only 30 to 35 percent of national fuel demand.
DAPPMAN further alleged that Dangote Refinery does not provide free delivery services and accused the company of attempting to monopolize the downstream sector by consistently undercutting prices and bypassing established marketers.
In response, Dangote clarified that the refinery chose not to utilize the traditional Single Point Mooring (SPM) system in order to avoid additional handling costs estimated at ₦75 per litre. According to him, continuing with the SPM model would result in approximately ₦1.5 trillion in avoidable costs annually.
The SPM system involves the offshore loading and unloading of petroleum products via a buoy system connected to tankers, which incurs substantial additional charges.
The refinery explained:
“If we were to load 40 million litres of PMS and 15 million litres of diesel through the SPM at an extra ₦75 per litre, the total additional cost would amount to about ₦1.5 trillion annually.
By instead using gantry loading and direct trucking, we eliminate these costs entirely—savings that can be redirected towards critical infrastructure development.”
The statement added that entrusting intermediaries who may not guarantee delivery to end-users is not a sustainable model. “We are committed to working with credible distributors and expanding access to affordable fuel for Nigerians, rather than supporting a system that exploits consumers,” the company said.
The CNG truck project represents an investment of over ₦720 billion. Initiated in August 2025, the program is designed to significantly reduce fuel transportation costs, lower carbon emissions, and support more than 42 million micro, small, and medium-sized enterprises (MSMEs) by cutting energy expenses.
The trucks, powered by locally sourced CNG from Tetracore Energy Group, will transport refined products directly from the refinery, streamlining fuel delivery across the country.