In a groundbreaking move set to transform Nigeria’s fuel supply chain, Dangote Petroleum Refinery today begins direct and free shipping of Premium Motor Spirit (PMS) and diesel to retailers across the country.
The initiative, announced by Africa’s largest single-train refinery, aims to eliminate distribution bottlenecks, reduce fuel prices, and enhance accessibility for consumers nationwide.
The refinery, located in Lekki, Lagos, has deployed a fleet of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to deliver fuel directly to petrol stations, manufacturers, telecom companies, aviation operators, and other large-scale users.
By absorbing logistics costs—a first in Nigeria’s energy sector—Dangote seeks to bypass traditional middlemen, curb price manipulation, and ensure a steady supply of petroleum products.
“This is about inclusive growth and affordability,” a refinery spokesperson said. “We are committed to ensuring no community is left behind in access to cleaner, more efficient energy.”
To further incentivize bulk buyers, Dangote is offering a credit facility: customers purchasing a minimum of 500,000 liters can access an additional 500,000 liters on a two-week credit, backed by a bank guarantee.
The refinery has also established CNG booster stations and a network of over 100 CNG-powered tankers to support seamless distribution, particularly in rural and underserved areas.
Industry players have welcomed the move, with the Independent Petroleum Marketers Association of Nigeria (IPMAN), representing over 30,000 members and 150,000 service stations, confirming that its members have registered to benefit from the direct supply plan.
“This is a game-changer for us,” said Abubakar Shehu, an independent marketer in Kwara State. “Before, we dealt with delays and high costs from middlemen. Now, we can get fuel faster and cheaper.”
The initiative has already impacted pump prices, with Dangote’s ex-depot petrol price dropping from N850 to N820 per liter, triggering private depot prices to fall to between N840 and N860 per liter.
Retail stations partnered with Dangote, including MRS, TotalEnergies, and Ardova, have begun reducing prices, with further cuts expected as the rollout expands.
However, the move has sparked concerns among depot owners and import-dependent marketers, who fear losing relevance in a market increasingly dominated by Dangote’s 650,000-barrel-per-day refinery.
“Depot owners who relied on storage fees are in trouble,” an industry insider noted. “Dangote’s storage capacity and direct model make intermediaries less necessary.”
Segun Ajayi-Kadir, Director General of the Manufacturers’ Association of Nigeria, called it “a direct assault on profiteering,” emphasizing its potential to stabilize the economy.
Backed by the Federal Government’s Naira-for-Crude policy, Dangote’s strategy aligns with President Bola Tinubu’s Renewed Hope Agenda, aiming to enhance energy security and self-sufficiency.
As the rollout begins today, Nigerians await the promised benefits of cheaper, more reliable fuel in a nation long plagued by scarcity and high costs.
