The Dangote Refinery and Petrochemicals will today launch its Compressed Natural Gas (CNG) trucks for the commencement of nationwide distribution of Premium Motor Spirit (PMS). The Refinery announced in August that it had received the first batch of its 4000 CNG-powered trucks for the fuel distribution programme, which was initially set to commence on August 15.
During a courtesy visit by the AfricaRice Centre at his Lagos office on Sunday, Aliko Dangote reiterated that its decision to adopt direct fuel distribution was to reduce dependency on third-party carriers for fuel distribution in Nigeria.
According to him, the move was 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.” According to them, while they welcomed the Refinery, they noted that the facility’s contribution is between 30 to 35 per cent of national demand.
They alleged that the Refinery does not offer free product delivery to buyers, adding that constant price slashes by the refinery, and to bypass them in distribution, were not patriotic, but a business move intended to monopolise the downstream market.
Responding, however, Dangote said it decided to jettison the Single Point Mooring (SPM) system for fuel distribution to avoid an extra cost of N75 per litre in handling charges, which would translate to N1.5 trillion annually. The SPM system is the offshore distribution of petroleum products using a loading buoy that serves as a connection point for tankers to load or unload liquid or gas products.
The statement 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.
“By contrast, utilising gantry loading and direct trucking would eliminate these costs entirely, resulting in substantial savings that could be redirected towards critical infrastructure investments. Losing N75 per litre to intermediaries who cannot guarantee that the products will be delivered to the Nigerian consumer is not a viable option. Rather than enabling such exploitation, we are committed to partnering with credible distributors and expanding humanitarian outreach, ensuring that petroleum products get to the Nigerian people transparently and affordably.”
The Refinery’s 4000 CNG truck is a project representing an investment of over N720 billion. The initiative, which began in August 2025, 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.
The trucks use CNG supplied by local partner Tetracore Energy Group and are designed to transport refined products directly from the refinery.
