Dangote Refinery Deploys 4,000 CNG Trucks for Nationwide Fuel Supply
The Dangote Refinery and Petrochemicals will today roll out its Compressed Natural Gas (CNG)-powered trucks to commence nationwide distribution of Premium Motor Spirit (PMS).
The refinery had earlier announced in August that it had received the first batch of 4,000 CNG trucks, with the distribution programme initially scheduled to begin on 15 August.
During a courtesy visit by the AfricaRice Centre to his Lagos office on Sunday, Aliko Dangote reiterated that the move to handle distribution directly was aimed at reducing dependence on third-party transporters. He described it as both a strategic decision and a national necessity.
Last week, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused the refinery of offering lower prices to international buyers while charging local buyers higher. DAPPMAN also alleged that Dangote bypasses marketers in distribution, calling it a monopolistic strategy.
In response, Dangote explained that the refinery rejected the Single Point Mooring (SPM) offshore loading system to avoid an additional N75 per litre in handling charges, which could amount to N1.5 trillion annually. Instead, gantry loading and direct trucking were adopted to eliminate such costs.
The refinery said:
“If we were to load 40 million litres of PMS and 15 million litres of diesel via the SPM system, the N75 handling charge per litre would translate to about N1.5 trillion in avoidable costs annually. By using direct trucking, these costs are eliminated and savings can be redirected into critical infrastructure.”
Dangote emphasised that it would partner only with credible distributors to ensure transparent and affordable supply to Nigerians.
The CNG truck project, valued at over N720 billion, began in August 2025 and is expected to lower logistics costs, reduce environmental impact, and benefit more than 42 million micro, small, and medium enterprises (MSMEs) by cutting energy costs. The trucks, supplied with CNG by Tetracore Energy Group, are designed to transport refined products directly from the refinery.
