Fuel Distribution: Dangote Receives 1,000 Trucks, Set to Begin Direct Supply From South-West

Fuel Distribution: Dangote Receives 1,000 Trucks, Set to Begin Direct Supply From South-West

  • After several days of delay, the Dangote Refinery is reportedly set to begin its planned nationwide fuel distribution
  • The refinery is said to have received about 1,000 trucks to commence the distribution in the South-West
  • The remaining 3,000 trucks will arrive at month end to begin direct supply to end users nationwide

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

After weeks of delays linked to Chinese logistics, Dangote Refinery is finally set to begin direct fuel distribution as 1,000 CNG-powered trucks arrive at its Lekki plant.

With the 1,000 trucks, the facility would commence fuel distribution to marketers in Lagos, Ogun, and other states in the South-West, while it awaits the arrival of the remaining 3,000.

Dangote Refinery to finally commence nationwide fuel distribution, names first states to benefit
Dangote Refinery receives 1,000 CNG trucks to commence fuel distribution from the South-West. Credit: Bloomberg/Contributor
Source: Getty Images

Dangote Refinery gets 1,000 trucks

According to sources, the mega refinery disclosed that more trucks have been delivered into the country, stressing that all the trucks would be delivered by month-end.

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Legit.ng had reported that the planned nationwide fuel distribution hit a snag last week as a Chinese firm failed to deliver enough trucks for the company to start the delivery.

According to a Punch report, sources in the company disclosed the number of trucks in the company, which rose to 1,000, while the remaining 3,000 are still being awaited.

With the arrival of 1,000 trucks, the refinery will now commence distribution in Lagos and other South-West states and spread to other zones nationwide.

3,000 more trucks to arrive by month-end

The report quoted a consultant to the Dangote Group as saying that all the trucks would be delivered by the end of September, citing logistics issues for the delay.

The giant oil company had said it was expecting an average of 60 shiploads of the trucks in six weeks.

“Over the next six weeks, the refinery expects at least 60 shiploads of these trucks to arrive in the country,” Group Chief of Branding and Communication, Dangote Industries Limited, Anthony Chiejina, said in a statement on August 10.

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A prior report by Legit.ng disclosed that the 650,000 bpd-capacity refinery revealed that it invested over N720 billion to deploy 4,000 CNG trucks nationwide for the project.

How the plan could save Nigeria ₦1.7 trillion

According to the firm, the scheme would save Nigeria over N1.7 trillion per annum in fuel distribution costs.

The company called the distribution plan strategic, saying it is expected to significantly benefit over 42 million micro, small and medium enterprises by reducing energy costs and improving profitability.

However, the move has sparked fear among tanker drivers and logistics operators who say it could lead to job losses.

The Natural Oil and Gas Suppliers Association of Nigeria (NOGASA) said the plan may affect their livelihoods.

Dangote Refinery announces receipt of 1,000 CNG trucks
More trucks are expected to arrive at Dangote Refinery for nationwide fuel distribution. Credit: Bloomberg/Contributor
Source: Getty Images

The association asked the refinery to suspend the plan and seek expanded dialogue to address concerns raised before commencing distribution to end users.

Meet Nigeria’s top 10 petroleum depot owners

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Legit.ng earlier reported that while Dangote Refinery dominates headlines, the real lifeline of Nigeria’s petroleum supply often rests in the hands of independent depot owners.

These players store, distribute, and move millions of litres of fuel daily, ensuring petrol stations and the economy keep running.

From Lagos harbours to Calabar Free Trade Zones, they compete fiercely for market share, influence, and strategic advantage.

Source: Legit.ng

Authors:
Pascal Oparada avatar

Pascal Oparada (Business editor) For over a decade, Pascal Oparada has reported on tech, energy, stocks, investment, and the economy. He has worked in many media organizations such as Daily Independent, TheNiche newspaper, and the Nigerian Xpress. He is a 2018 PwC Media Excellence Award winner. Email:pascal.oparada@corp.legit.ng