Dangote Refinery’s newly acquired Compressed Natural Gas (CNG) trucks have commenced loading petroleum products at the facility for direct supply to filling stations nationwide. The first batch of trucks, part of a 4000-strong fleet, began taking turns at the gantry to load products, marking a significant step in the refinery’s fuel distribution program.
The refinery had announced the arrival of the first batch of CNG-powered trucks in August, with the aim of reducing dependence on third-party carriers for fuel distribution in Nigeria. Aliko Dangote, the refinery’s owner, emphasized that the decision to adopt direct fuel distribution was a strategic choice and a national imperative.
The move comes amid allegations by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that the refinery is offering lower prices to international buyers while quoting higher rates to local off-takers. DAPPMAN noted that the refinery’s contribution to national demand is between 30 to 35 percent and accused the facility of not offering free product delivery to buyers.
In response, Dangote stated that the refinery decided to jettison the Single Point Mooring (SPM) system for fuel distribution to avoid extra costs of N75 per liter in handling charges, which would translate to N1.5 trillion annually. The refinery opted for gantry loading and direct trucking to eliminate these costs and redirect savings towards critical infrastructure investments.
The 4000 CNG truck project represents an investment of over N720 billion and aims to lower logistics costs, reduce the environmental impact of fuel distribution, and benefit over 42 million micro, small, and medium enterprises (MSMEs) by lowering energy costs. The initiative, which began in August 2025, is expected to have a significant impact on Nigeria’s fuel distribution landscape.
The commencement of product loading by Dangote’s CNG trucks marks a significant milestone in the refinery’s operations and is expected to improve fuel availability and affordability in Nigeria. As the refinery continues to expand its operations, it is likely to play a crucial role in meeting the country’s growing energy demands. With its commitment to direct fuel distribution and investment in infrastructure, Dangote Refinery is poised to make a positive impact on Nigeria’s energy sector.