Dangote Begins Direct Fuel Distribution Today at N820

By Ada Samson, Abuja

The Dangote Petroleum Refinery is today rolling out over a thousand new trucks to start selling fuel directly to petrol stations across Nigeria.

This major move is set to drastically cut the price of petrol, with the company offering it from its depot at just N820 per litre.

This new direct distribution scheme, which was initially planned for last month but delayed due to shipping problems, is a key part of the refinery’s strategy to control more of the supply chain.

The company had ordered 4,000 Compressed Natural Gas (CNG)-powered trucks from China, but struggled to find enough ships to bring them all to Lagos. A senior official from the company confirmed that over 1,000 trucks have now arrived, with hundreds more coming every week.

For the public, the most immediate effect will be seen at the pump. Following this change, the price of petrol is expected to drop significantly in several key regions.

In Lagos and other south-western states, motorists can expect to buy fuel for around N841 per litre. In the capital city of Abuja, as well as in Rivers, Delta, Edo, and Kwara states, the price will be approximately N851 per litre.

This first phase will focus on these areas, with plans to expand nationwide as more trucks are delivered.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has welcomed the development. Its national president, Abubakar Shettima, stated that many of its members have already applied to receive fuel directly from Dangote and are ready for the trucks to arrive.

He said the price reduction is a positive step for the masses, which is what the association supports.

However, the move has not been welcomed by all. The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) has criticised the plan, calling it a “Greek gift” – meaning a gift with hidden harmful intentions. They allege that Dangote sells fuel to international traders at a cheaper rate than to Nigerian suppliers and argue that the price slash is a tactic to push out competition.

Dangote has strongly denied these claims. The company also suggested that a recent price hike for CNG by a major supplier, NIPCO, was a targeted attempt to sabotage their new trucking initiative. NIPCO declined to comment when approached.

Beyond cheaper fuel, Dangote emphasises the broader benefits of its scheme. The use of CNG trucks is expected to save the Nigerian economy over N1.8 trillion annually.

The company also stated that its operations have already created over 570,000 jobs and helped stabilise the supply of petrol, diesel, and cooking gas across the country. This new phase of direct distribution is anticipated to benefit millions of small businesses by lowering their energy costs and creating new jobs for drivers and station attendants.