The Dangote Petroleum Refinery has begun the phased receipt of 4,000 Compressed Natural Gas (CNG) trucks, signaling the start of its transformative petroleum products distribution program set to launch on August 15, 2025.
This initiative, part of the refinery’s logistics strategy, aims to revolutionize fuel distribution across Nigeria by slashing logistics costs, boosting supply efficiency, and promoting cleaner energy.
The Dangote Group has invested over ₦720 billion in this landmark program, which is projected to save Nigerians more than ₦1.7 trillion annually by eliminating transportation costs for fuel marketers and large-scale consumers.
The initiative will deliver petrol and diesel directly to filling stations, industrial facilities, and high-volume consumers, covering Nigeria’s daily consumption of 65 million liters of refined petroleum products—45 million liters of Premium Motor Spirit (PMS), 15 million liters of diesel, and 5 million liters of aviation fuel.
By covering logistics costs estimated at ₦45 per liter, the refinery will absorb over ₦1.07 trillion annually in distribution expenses.
This is expected to lower pump prices, ease inflationary pressures, and enhance profitability for over 42 million Micro, Small, and Medium Enterprises (MSMEs) by reducing energy costs.
The program also includes the establishment of nationwide CNG “mother and daughter” stations, alongside other infrastructure, to support the free distribution model.
The initiative aligns with Dangote’s commitment to eliminating logistics bottlenecks, enhancing energy efficiency, and promoting environmental sustainability.
By leveraging CNG trucks, the refinery aims to reduce carbon emissions and curb cross-border smuggling of petroleum products.
Additionally, the program is expected to create over 15,000 direct jobs, including roles for drivers, station managers, and attendants, while revitalizing dormant filling stations across the country.
“This is a bold step toward economic transformation,” the Dangote Group stated. “By reducing fuel distribution costs, we aim to lower production costs, stimulate economic growth, and support Nigeria’s energy independence.”
As the August 15 rollout approaches, the initiative has sparked optimism for more affordable fuel prices and a more efficient distribution system, though some fuel marketers have expressed concerns about potential disruptions to existing supply chains.
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