The Dangote Petroleum Refinery and Petrochemicals has launched over 1,000 Compressed Natural Gas (CNG)-powered trucks for direct fuel distribution across Nigeria, marking the first phase of a nationwide programme aimed at reducing fuel logistics costs and lowering pump prices.
The launch coincides with the refinery’s one-year anniversary of petrol production and is part of a broader plan to deploy 4,000 CNG trucks, a project representing an investment of over N720 billion.
The trucks will transport refined petroleum products directly from the refinery, cutting reliance on third-party carriers and addressing long-standing bottlenecks in fuel distribution.
“The commencement of the initiative marks a groundbreaking development in Nigeria’s fuel distribution network. Our commitment is to maintain operational efficiency while scaling up the fleet, ensuring fuel reaches customers nationwide transparently and affordably,” said Mr Anthony Chiejina, Group Chief of Branding and Communication at Dangote Industries Limited.
Under the initiative, pump prices have been adjusted. Petrol now sells at N841 per litre in Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, down from N865–N880. In Abuja, Delta, Rivers, Edo, and Kwara, prices are N851 per litre, previously between N890 and N910.
Dangote said the reductions will expand to additional states as more trucks are deployed.
The refinery explained that transitioning from the Single Point Mooring (SPM) system to direct gantry loading and CNG truck delivery eliminates handling charges of N75 per litre, saving approximately N1.5 trillion annually.
The company said these savings would be redirected towards infrastructure investments while lowering overall fuel distribution costs.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the initiative, with its National President, Abubakar Shettima, saying, “We are on standby, waiting for Dangote trucks to come. Many of our members have applied for direct fuel delivery. The price reduction will make the masses happy, and that is what IPMAN stands for.”
However, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) criticised the refinery, alleging it sells petrol to international buyers at lower rates than local marketers and claimed the price cuts could stifle competition.
Dangote dismissed the claims, insisting the programme aims to boost efficiency and reduce logistics costs.
The programme is projected to benefit over 42 million micro, small, and medium enterprises (MSMEs), revitalise dormant filling stations, and create over 15,000 direct jobs.
The refinery also highlighted the environmental benefits of the programme, noting that it reduces emissions and supports more sustainable fuel distribution.
Tosin Coker, Commercial Coordinator of the Presidential Compressed Natural Gas Initiative, described the rollout as “a milestone achievement in our efforts to accelerate gas-powered transport adoption in Nigeria.”
Dangote plans to phase in additional trucks nationwide in the coming weeks to expand coverage, improve fuel accessibility, enhance energy security, and stabilise prices for both retail and large-scale consumers.
