Dangote Refinery Deploys 4,000 CNG Trucks to Begin Nationwide Fuel Distribution

The Dangote Refinery and Petrochemicals has officially launched its fleet of Compressed Natural Gas (CNG) trucks, marking the start of nationwide distribution of Premium Motor Spirit (PMS). The move, which kicked off on Monday, is part of the refinery’s strategy to cut costs, improve efficiency, and ensure affordable fuel delivery across Nigeria.

The refinery had earlier announced in August that it received the first batch of its 4,000 CNG-powered trucks, a project representing an investment of over ₦720 billion. The trucks, designed to transport refined products directly from the refinery, are supplied with CNG by local partner Tetracore Energy Group.

During a courtesy visit by the AfricaRice Centre at his Lagos office, Aliko Dangote explained that adopting direct distribution was both a strategic choice and a national imperative. He emphasized that bypassing third-party carriers would eliminate inefficiencies and unnecessary costs in the downstream sector.

Dangote also addressed recent criticisms from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), who accused the refinery of offering lower prices to international buyers while quoting higher rates to local off-takers. The group further alleged that the company’s decision to bypass marketers was an attempt to monopolize the sector.

In response, Dangote defended the move, revealing that the refinery scrapped the Single Point Mooring (SPM) system to avoid an additional ₦75 per litre in handling charges — costs that would have amounted to nearly ₦1.5 trillion annually. Instead, the refinery opted for gantry loading and direct trucking to save costs and ensure affordability for Nigerians.

“If the Dangote Refinery were to load 40 million litres of PMS and 15 million litres of diesel via the SPM system at an extra ₦75 per litre in handling charges, it would mean ₦1.5 trillion annually in avoidable costs. By contrast, direct trucking eliminates these costs entirely, freeing up resources for critical infrastructure investments,” the refinery said in a statement.

The initiative, which began in August 2025, is also expected to reduce the environmental impact of fuel distribution while significantly lowering logistics expenses. Over 42 million micro, small, and medium enterprises (MSMEs) are projected to benefit through reduced energy costs, further supporting economic growth.

With this move, the Dangote Refinery is positioning itself as a key driver of transparency, affordability, and sustainability in Nigeria’s downstream oil sector.