Nigeria’s Dangote Refinery has missed its self-imposed deadline of August 15, 2025, to commence nationwide distribution of premium motor spirit and automotive gas oil products. The 650,000-barrel-per-day refinery had announced plans to roll out 4,000 compressed natural gas trucks for fuel and diesel distribution, aiming to save Nigerians N45 per liter in logistics costs, amounting to N1.2 trillion annually.
The initiative, touted as a major overhaul of Nigeria’s downstream oil sector, has attracted mixed reactions from marketers, retailers, and suppliers. While some stakeholders welcome the move, others have expressed concerns about potential job losses and monopolistic tendencies. The National Petroleum Products Retail Outlets Owners Association of Nigeria and the Independent Petroleum Marketers Association of Nigeria have differing views on the impact of the fuel distribution scheme.
According to Billy Gillis Harry, National President of the National Petroleum Products Retail Outlets Owners Association of Nigeria, the initiative may not lead to a reduction in fuel prices, citing the example of the cement industry where prices have continued to rise despite Dangote’s similar initiative. On the other hand, Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria, believes that the scheme will reduce logistics costs and lead to lower fuel prices.
As the delay in the rollout of the fuel distribution scheme continues, Dangote Refinery has remained silent on the reason for the postponement. The company had received a shipment of CNG trucks, with reports suggesting that the number of trucks received has increased to around 1,000. However, the exact number of trucks and the cause of the delay remain unclear.
The development comes as retail fuel prices in Abuja range between N885 and N910 per liter, with global crude oil prices trading at $68.47 and $64.47 for Brent and West Texas Intermediate crude futures, respectively. As stakeholders await further developments, the significance of the Dangote Refinery’s fuel distribution scheme remains a topic of interest, with potential implications for Nigeria’s oil sector and the broader economy.