The Dangote Refinery and Petrochemicals is set to flag off its direct distribution of Premium Motor Spirit (PMS) nationwide today, deploying its brand-new fleet of Compressed Natural Gas (CNG)-powered trucks.
This marks a major step toward reshaping Nigeria’s fuel distribution system and tackling long-standing concerns about supply bottlenecks and inflated logistics costs.
The refinery, which announced in August that it had received the first batch of its 4,000 CNG trucks, says the initiative will not only cut costs but also bring significant relief to millions of Nigerians by stabilizing supply and lowering pump prices over time.
Direct-to-Market Strategy to Cut Out Middlemen
Speaking during a courtesy visit by the AfricaRice Centre to his Lagos office on Sunday, Aliko Dangote, President of the Dangote Group, said the decision to handle fuel distribution directly was both a business strategy and a national obligation.
“This move is not just about us; it is about ensuring that Nigerians get petroleum products at the most competitive price possible,” he said.
Dangote stressed that the refinery’s direct-to-market model would drastically reduce Nigeria’s dependence on third-party carriers, who he claimed often inflate costs and create artificial scarcity.
The refinery’s decision to bypass the Single Point Mooring (SPM) offshore loading system is projected to save as much as N1.5 trillion annually. According to Dangote, continuing with the SPM system would add an extra N75 per litre in handling charges on every litre of petrol and diesel loaded, a cost that would eventually fall on consumers.
“Losing N75 per litre to intermediaries who cannot guarantee that the products will be delivered to the Nigerian consumer is not a viable option,” the refinery said in a statement.
Instead, the refinery is investing in gantry loading and direct trucking, which it says will guarantee transparency and affordability.
A ₦720 billion investment with national impact
The new trucks represent an investment of more than N720 billion and are powered by CNG supplied by local partner Tetracore Energy Group. Apart from reducing Nigeria’s carbon footprint, the move is expected to significantly lower logistics costs and benefit over 42 million micro, small, and medium enterprises (MSMEs) that rely on fuel to power their businesses.
Last week, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) had accused the refinery of quoting higher prices for local buyers while offering lower rates to international customers. They also claimed the refinery was deliberately bypassing marketers in a bid to dominate the downstream market.
But Dangote insists that his company is focused on delivering petroleum products transparently to Nigerians. “Rather than enabling exploitation, we are committed to partnering with credible distributors and expanding humanitarian outreach to ensure fuel gets to the Nigerian people affordably,” the refinery said.
Today’s rollout will be closely watched by both consumers and industry stakeholders as the Dangote Refinery attempts to redefine how fuel is distributed across the country.
If successful, the move could spell the beginning of cheaper, cleaner, and more reliable fuel delivery, and potentially force other industry players to rethink their own logistics models.
Discover more from RainSMediaRadio
Subscribe to get the latest posts sent to your email.
