On Monday, Dangote Refinery’s “newly acquired Compressed Natural Gas (CNG) trucks…began loading petroleum products at the facility for direct supply to filling stations nationwide.”
A source at the launch reported that the trucks began taking turns at the gantry to load products.
According to Aliko Dangote, the decision to adopt “direct fuel distribution” was made “to reduce dependency on third-party carriers for fuel distribution in Nigeria,” a move he described as “not only a matter of strategic choice but a national imperative.”
Last week, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused the Refinery of “offering lower prices to international buyers while quoting higher rates to local off-takers.”
They also alleged that the refinery’s actions were “not patriotic, but a business move intended to monopolise the downstream market,” noting that the facility’s “contributions is between 30 to 35 per cent of national demand.”
In response, Dangote said the refinery decided to avoid the Single Point Mooring (SPM) system to prevent an extra cost of N75 per litre in handling charges.
The statement from the refinery said, “If the Dangote Refinery were to load 40 million litres of PMS and 15 million litres of AGO (diesel) via the Single Point Mooring (SPM) at an extra cost of N75 per litre in handling charges, it would amount to approximately N1.5 trillion annually in avoidable charges.”
It added that “Losing N75 per litre to intermediaries who cannot guarantee that the products will be delivered to the Nigerian consumer is not a viable option.”
The initiative, which began in August 2025 and represents a N720 billion investment, aims to “significantly lower logistics costs,” “reduce the environmental impact of fuel distribution,” and “benefit over 42 million micro, small, and medium enterprises (MSMEs)” by lowering energy costs.
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