Dangote to Build CNG Stations to Power 4,000 Trucks for Nationwide Fuel Distribution Plans

• The Dangote Refinery has begun plans to invest in CNG stations nationwide as it begins massive fuel distribution
• The Lekki-based refinery disclosed this recently, saying the move will support its CNG-powered vehicles nationwide
• The refinery recently unleashed 4,000 CNG-powered trucks for the effective distribution of fuel nationwide

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Dangote Refinery has explained that it plans to invest in CNG stations, also known as daughter stations, as it moves to begin nationwide fuel distribution on August 15, 2025.

The giant refinery disclosed this when it announced the launch of its fuel distribution bonanza a few days ago.

Dangote unleashes CNG-powered trucks

According to the refinery, the stations will help to power its 4,000 CNG-powered trucks to facilitate the delivery of petrol and diesel to end-users nationwide.

Legit.ng earlier reported that the mega refinery procured 4,000 CNG-powered trucks for the effective distribution of fuel across the country.

The company disclosed that the phase will continue over an extended period.

“The refinery is also investing in CNG stations, commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers across the country to ensure seamless product distribution,” the statement said.

Dangote to begin nationwide fuel distribution

A previous report by Legit.ng disclosed that the move to distribute fuel nationwide by the refinery would reshape Nigeria’s downstream petroleum industry.

According to the report, experts have said that the move is already triggering a price realignment, with consumers watching keenly for a potential drop in the cost of petrol and diesel.

According to them, the impact of Dangote's direct-to-retail strategy will be a double-edged sword for existing fuel marketers and retail outlets in Nigeria.

They disclosed that the winners will be independent marketers in underserved areas.

Independent marketers, particularly those in rural and remote locations, have grappled with inconsistent supply and high ex-depot prices from coastal depots for years. 

Dangote's ability to deliver directly to their stations at a uniform price, including logistics, will be a game-changer, ensuring a steady flow of products and potentially revitalising dormant outlets.

Experts praise Dangote’s bold move

“Dangote's decision to supply directly to marketers is a win for both the company and  Nigerians who live in areas far from Lagos. For Nigerians, it will cut the prices of the products in those locations, like Borno, Yobe, Cross River, Akwa Ibom, etc. 

For the company, it will sell more of its products, and will also enjoy goodwill from Nigerians who see it as the most patriotic businessman. But for retailers, it's a bad day,” Financial analyst, Ishaya Ibrahim, told Legit.ng.

Additionally, large industrial consumers such as manufacturing companies, construction firms, and other businesses that rely heavily on diesel and petrol will benefit significantly from direct bulk purchases from the refinery. 

This will likely translate to lower operational costs and increased efficiency.

Also, consumers will benefit as the increased competition and elimination of several layers in the supply chain are expected to lead to more stable and potentially lower fuel prices at the pump for the average Nigerian.

Depot owners and marketers will lose

However, the experts say that depot owners, who play the traditional role of depot owners as intermediaries, are under serious threat. 

With Dangote bypassing them to supply directly to retail outlets, many depots may become redundant, facing a sharp decline in revenue from storage and throughput services.

Marketers who have historically relied on importing petroleum products will find it increasingly difficult to compete with the locally refined and competitively priced fuels from the Dangote refinery. 

Dangote, more depot owners increase petrol prices

Legit.ng earlier reported that fuel depot owners had increased their prices in response to a global oil spike.

Between Wednesday, June 11, and Friday, June 13, 2025, fuel prices rose sharply by as much as 14.6% in some locations.

The development came amid a notable rally in global crude oil prices. Brent gained about 5.54%, closing at $73.20, WTI hit 5.58% to $71.84, while Murban crude rose 4.84% to sell at $72.60 per barrel.

Source: Legit.ng