The Dangote Refinery and Petrochemicals is set to roll out its fleet of Compressed Natural Gas (CNG)-powered trucks today(Monday), officially kicking off the direct nationwide distribution of Premium Motor Spirit (PMS).
This marks a significant step in the company’s logistics overhaul, as it aims to deliver refined products across Nigeria without relying on third-party transporters.
The refinery had earlier in August announced the arrival of the first batch of its 4,000 CNG trucks, an initiative originally scheduled to begin on August 15. The trucks are designed to operate with CNG supplied by local energy firm Tetracore Energy Group, offering a greener, more cost-efficient alternative to traditional diesel-powered logistics.
Chairman of the Dangote Group, Aliko Dangote, reaffirmed the company’s position during a courtesy visit by representatives of the AfricaRice Centre at his Lagos office on Sunday. According to him, bypassing intermediaries in the distribution chain is a strategic and national necessity.
He explained that adopting the gantry loading and direct trucking system as opposed to the traditional Single Point Mooring (SPM) offshore method will eliminate an estimated ₦75 per litre in handling costs, saving the country up to ₦1.5 trillion annually.
“It makes no economic sense to lose ₦75 per litre to intermediaries who may not guarantee product delivery to Nigerian consumers,” Dangote said. “Our goal is to ensure transparency, affordability, and efficiency in product distribution.”
The launch comes amid friction between the Dangote Refinery and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), which recently accused the company of favouring international buyers with lower pricing while offering higher rates to local distributors.
DAPPMAN also criticised the refinery for not covering delivery costs and warned that its direct distribution model could be seen as an attempt to monopolise the downstream market.
In response, Dangote rejected these claims, defending the company’s decision to avoid additional port charges and arguing that direct distribution through its CNG truck fleet puts more control into the hands of credible partners and ensures that products reach consumers efficiently.
“Rather than enable cost-driven exploitation, we are committed to working with trusted distributors and supporting humanitarian outreach initiatives,” the statement added.
The ₦720 billion investment in CNG-powered logistics is not just about cost-cutting, it also aims to reduce carbon emissions in Nigeria’s fuel transportation network.
By opting for cleaner-burning CNG technology, Dangote’s logistics strategy supports both environmental sustainability and economic empowerment.
The company projects that the initiative will benefit over 42 million micro, small, and medium enterprises (MSMEs) by lowering energy and fuel delivery costs, a key hurdle for small businesses across Nigeria.
About the Author
