The Dangote Oil Refinery is set to initiate the first phase of its direct fuel distribution plan, with the rollout of 1000 Compressed Natural Gas-powered (CNG) trucks.
- Dangote Oil Refinery is launching the first phase of its direct fuel distribution using 1000 CNG-powered trucks.
- The initiative aims to reduce gasoline distribution costs by ₦1.7 trillion annually and enhance supply chain efficiency.
- CNG vehicles are expected to cut distribution expenses by 40% and lower carbon emissions, aligning with global energy goals.
- Concerns have arisen within the oil sector regarding potential job losses and the impact on the national supply chain.
This plan, which has been a bone of contention since its announcement, will begin on a high note, given the readiness of the Independent Petroleum Marketers Association of Nigeria (IPMAN) to receive the trucks.
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In June 2025, the Dangote Refinery disclosed its intentions to launch an in-house distribution network with the deployment of 4,000 CNG-powered distribution trucks.
The initiative, lauded by some, aims to lower Nigeria’s annual gasoline distribution costs by ₦1.7 trillion and increase the efficiency of the country’s petroleum supply chain.
Compared to traditional diesel trucks, CNG vehicles are expected to save around 40% on distribution costs while also lowering carbon emissions, aligning the Dangote Refinery with global energy transition trends.
However, as well-intentioned as the idea may appear, marketers in Nigeria’s oil sector quickly expressed concerns about enormous job losses and disruptions in the national gasoline supply chain.
Last week, another situation arose, where IPMAN accused Dangote of wanting his truck drivers to operate outside of the jurisdiction of the union rule.
This resulted in a brief strike by union members, led by IPMAN, which momentarily disrupted fuel distribution across the country.
However, officials at the Dangote Refinery recently revealed to The Punch that in commemoration of the refinery’s first petrol production anniversary, the direct distribution of fuel using Dangote’s CNG trucks would commence
Logistics issues in China had caused the plan to be postponed from its original start date of August 15.
How Dangote’s distribution plan was affected by Chinese logistics issues
In July, the Dangote Petroleum Refinery announced that it had begun receiving its 4,000 brand-new compressed natural gas (CNG) trucks.
However, by August, reports indicated that the highly anticipated deployment of 4,000 trucks was derailed due to glitches with Chinese logistics that affected supply schedules.
At the time, the refinery had received just 450 trucks.
An official explained that the delay was due to a paucity of ships capable of transporting the automobiles from China to Nigeria.
Nevertheless, an anonymous source from the refinery has indicated that Dangote currently possesses over 1000 trucks, with hundreds more arriving weekly.
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“The trucks are arriving in hundreds every week,” the official who asked to remain anonymous stated.
The roll-out of the trucks coincides with the refinery’s decision to reduce its petrol prices across several states in the country.
According to the refinery, pump prices have been reduced to ₦841 per litre in Lagos and the South West, and ₦851 per litre in Abuja, Edo, Kwara, Rivers, and Delta States.
The gantry price has been set at ₦820 per litre.
