Cheaper Petrol in Sight as Dangote Receives 4,000 CNG Trucks for Nationwide Distribution
- Dangote Refinery has officially confirmed receiving the 4,000 CNG-Powered trucks set to disrupt fuel distribution in Nigeria
- The nationwide fuel distribution plan has drawn mixed reactions from marketers, with some calling it a monopoly, while others welcomed it
- The fuel distribution is set to commence this month and will shift the dynamics of Nigeria’s petroleum product distribution dynamics
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Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
The Dangote Petroleum Refinery & Petrochemicals has officially begun receiving a fleet of 4,000 compressed natural gas-powered trucks, a major step toward reshaping Nigeria’s fuel distribution network.
The trucks, imported through Apapa Port, will support the refinery’s nationwide fuel logistics programme set to launch on August 15, 2025.
Source: Getty Images
First trucks arrive in Ibeju-Lekki
Valued at an estimated ₦720 billion, the fleet represents one of the largest capital investments in Nigeria’s downstream sector in recent years.
Dangote Industries says the goal is clear — cut logistics costs, improve supply efficiency, and ultimately make petrol more affordable for Nigerians.
According to a Punch report, the first batch of CNG trucks has already arrived at the refinery site in Ibeju-Lekki, Lagos.
The delivery was received by Devakumar Edwin, Vice-President of Oil and Gas at Dangote Industries, in the presence of refinery staff, partners, and customers.
“This is more than just the arrival of trucks; it is the arrival of a new era in Nigeria’s energy sector,” Edwin said. “These trucks will help make petrol distribution faster, cleaner, and cheaper.”
Lower costs, bigger savings
According to Dangote’s Group Chief of Branding and Communication, Anthony Chiejina, the CNG-powered trucks will drastically cut transportation costs.
“We are projecting savings of over ₦1.7 trillion annually in fuel distribution costs,” Chiejina revealed.
These savings are expected to translate into lower pump prices, especially as transportation is a major factor driving fuel costs nationwide.
In addition, the initiative will help curb smuggling, revitalise dormant filling stations, and improve fuel availability in remote areas.
Boost for small businesses and job creation
Dangote says over 42 million Micro, Small, and Medium Enterprises (MSMEs) will benefit from cheaper fuel, reducing their operating costs and boosting profitability.
The company estimates that the project will create more than 15,000 direct jobs across the logistics chain — from truck drivers to station managers.
The new trucks will also support environmental sustainability by reducing emissions compared to diesel-powered alternatives, in line with global green energy trends.
Countdown to August 15
With at least 60 shiploads of trucks expected over the next six weeks, Nigerians are now counting down to August 15 — the date when Dangote’s nationwide CNG-fuelled distribution network is scheduled to go live.
Industry experts believe this initiative could be a turning point in Nigeria’s downstream petroleum sector, easing inflationary pressures and stabilising fuel prices in the months ahead.
Analysts disagree on the plan
Meanwhile, analysts are divided over the mega refinery’s massive distribution plans.
While some see it as a game-changer in logistics, which might lead to a price cut, others say it reeks of plans to control the market.
Source: Getty Images
Adeola Yusuf, energy policy analyst and Team Lead at Platforms Africa, hailed the move as revolutionary, saying it will drastically impact fuel prices nationwide.
“If properly done, the plan is both brave and disruptive. It will lead to reduced costs because it targets end-users and offers incentives such as credit facilities.
To underscore its importance, last week, tanker drivers almost disrupted telecom services nationwide due to a labour dispute. They refused to supply diesel to towers and telecom base stations.
Imagine if Dangote had begun the distribution programme, these people would be completely sidelined,” Yusuf said.
However, Osas Igho said the plan is a double-edged sword with several implications.
“The move might lead to mass loss of jobs, as most logistics firms, which will be affected, will downsize. Also, I am not sure how this will benefit consumers other than that it will boost Dangote’s reach,” he said.
GAIL Refinery takes shape
Legit.ng earlier reported that in a transformative move for Nigeria’s energy industry, Gasoline Associates International Limited (GAIL), led by its Chairman and CEO, Lukman Akande Bolaji, has announced the launch of a major refinery project in Ipokia, Ogun State.
The new refinery will begin with a capacity to process 100,000 barrels of crude oil per day, with long-term plans to scale up to 450,000 barrels daily.
Once operational, the refinery will produce critical petroleum products such as Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Liquefied Petroleum Gas (LPG), and Jet Fuel (ATK), while also delivering petrochemical derivatives to both domestic and international markets.
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Source: Legit.ng
