In a landmark move poised to reshape Nigeria’s downstream oil and gas sector, the Dangote Petroleum Refinery has announced it will commence nationwide distribution of Premium Motor Spirit (PMS) and diesel from August 15, 2025. The rollout is part of a sweeping logistics and supply chain overhaul expected to reduce energy costs, combat fuel scarcity, and breathe new life into the country’s fragmented retail distribution network.
The Lagos-based refinery, the largest single-train facility in the world, is deploying 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to ensure efficient and eco-friendly fuel delivery across Nigeria. Aimed at both public and private sector players, the fuel supply will be extended to marketers, petrol station dealers, manufacturers, telecommunications operators, aviation companies, and large-volume users, according to a statement released by the company on Sunday.
Dangote
Refinery will offer free logistics support as part of the distribution
programme, a rare move in the industry that could significantly slash
operational costs for fuel buyers. This support includes free product
transportation to outlets, which helps bypass the traditional bottlenecks of
third-party haulage and congested depot systems, challenges that have long
plagued the sector.
To further
consolidate its supply chain dominance, the company is also establishing daughter
booster stations and will operate a dedicated fleet of over 100 gas-powered
tankers, focused solely on sustaining fuel availability.
“Dangote Petroleum
Refinery is pleased to announce the commencement of a significant national
initiative designed to transform Nigeria’s fuel distribution landscape.” The company
announced.
“Effective 15th of August 2025,
the refinery will begin the distribution of Premium Motor Spirit and diesel to
marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other
large users across the country, with free logistics to boost the distribution
network.” Dangote refinery added.
“This
strategic programme is part of our broader commitment to eliminating logistics
costs, enhancing energy efficiency, promoting sustainability and supporting
Nigeria’s economic development.”
While many
expected the refinery’s operations to drive pump prices down, Aliko Dangote,
President of the Dangote Group, has clarified that the real disruption lies not
in pricing but in a total overhaul of the distribution model.
“There will
be a major ‘shakedown’ in the entire country,” he said recently, following
President Bola Tinubu’s visit to the $20 billion facility. Dangote emphasized
that the focus is on structural transformation, rather than mere cost
adjustment.
This
development arrives as tanker drivers in Lagos threaten a strike over high
operational costs, specifically a N12,500 levy per truck for the E-Call Up
system at the Lekki-Epe corridor. If unresolved, the impasse could disrupt fuel
supply in the commercial capital. However, the Dangote initiative could serve
as a critical counterbalance, ensuring steady product flow and bypassing
conventional loading terminals.
Also
noteworthy is the credit scheme included in the offer, which targets bulk
buyers of 500,000 litres and above. The scheme is designed to:
- Reopen dormant or inactive filling
stations,
- Lower transportation-related inflation,
- Stimulate energy-reliant small
businesses,
- And reinforce the Tinubu administration’s
broader economic reform agenda.
The Dangote
Refinery’s upcoming fuel distribution scheme is more than just a logistics
upgrade — it signals a seismic shift in how petroleum products move across
Nigeria, with long-term implications for market competition, sustainability,
and access. If executed efficiently, this initiative could mark the beginning
of a new era in Nigerian fuel economics, where logistics is not a liability but
a value-added advantage.
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