THE Dangote Refinery and Petrochemicals is set to roll out its fleet of Compressed Natural Gas (CNG) trucks today, marking the official start of nationwide distribution of Premium Motor Spirit (PMS).
The company had earlier confirmed the arrival of the first batch of its 4,000 CNG-powered trucks in August, an initiative originally scheduled to begin operations on August 15.
The trucks—part of a ₦720 billion investment—are designed to cut logistics costs, lower emissions, and deliver refined products directly from the refinery, with compressed natural gas supplied by Tetracore Energy Group.
Speaking during a courtesy visit by officials of the AfricaRice Centre yesterday, Aliko Dangote, President of Dangote Industries, explained that the decision to handle distribution in-house was both a strategic and national necessity, reducing reliance on third-party carriers.
The launch comes amid tensions with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), which recently accused the refinery of favouring international buyers with lower prices while offering higher rates to local distributors.
DAPPMAN also raised concerns that Dangote’s direct distribution model and frequent price adjustments could edge out marketers in the downstream sector.
Dangote defended the move, saying the refinery had abandoned the Single Point Mooring (SPM) offshore loading system to avoid additional handling costs of ₦75 per litre—an amount that could add up to about ₦1.5 trillion annually.
Instead, he argued, direct trucking and gantry loading eliminate unnecessary costs and ensure affordability and transparency for Nigerian consumers.
According to Dangote, the initiative is expected to benefit over 42 million micro, small, and medium enterprises (MSMEs) by cutting energy costs, while also easing pressure on the broader economy through more efficient fuel distribution.