Dangote Refinery Shakes Market: Deploys CNG Trucks, Sells Petrol Cheaper at ₦850/Litre
- Dangote Refinery raised the hope of reduced fuel prices after deploying its 4,000 compressed natural gas (CNG) trucks
- The mega refinery began its nationwide fuel distribution, selling petrol at N850 per litre
- The move came as petrol prices soared near N1,000 per litre as marketers pointed accusing fingers at depot operators
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Dangote Petroleum Refinery has intensified nationwide petrol distribution using Compressed Natural Gas (CNG)-powered trucks, a move designed to cut logistics costs and stabilise prices as petrol nears the ₦1,000 per litre mark across major cities.
Despite the refinery’s efforts to sell Premium Motor Spirit (PMS) at a cheaper ₦850 per litre to marketers such as MRS, AP, and Heyden, retail pump prices have continued to rise, sparking fresh public concern and renewed debate about fuel affordability.
Source: Getty Images
CNG trucks to the rescue
Sources close to the refinery confirmed that the deployment of CNG-powered trucks has allowed the 650,000 barrels-per-day plant to sustain a consistent supply nationwide even as the Nigerian National Petroleum Company Limited (NNPCL) increased its depot price from ₦850 to ₦900 per litre.
By switching to CNG trucks, the refinery aims to reduce diesel dependency in distribution, lower transportation costs, and push Nigeria closer to its cleaner energy transition goals. Industry watchers believe this could mark the beginning of a logistics revolution in petroleum supply.
“The use of CNG trucks is a bold step,” said an independent energy analyst, Olatide Jeremiah. “It’s not just about price, it’s about efficiency, sustainability, and breaking long-standing bottlenecks in Nigeria’s downstream logistics.”
Depot prices surge despite Dangote’s intervention
According to a Vanguard report, fresh market data from Petroleumprice.ng showed that depot prices have continued to climb despite Dangote’s cheaper supply rates.
In Lagos, private depots such as Aiteo and Pinnacle sold petrol between ₦870 and ₦890 per litre, while Integrated Oil and Gas maintained ₦870 per litre.
At Calabar, Matrix Energy and Northwest Petroleum traded at ₦890 and ₦880 per litre, while Sobaz Depot recorded the month’s highest rate, ₦900 per litre.
Jeremiah noted that prices could stabilise once the Dangote Refinery fully ramps up operations, saying, “The refinery has the capacity to crash depot prices once it begins consistent domestic supply.”
Pump prices hit Nigerians hard
However, these wholesale price adjustments have yet to ease the burden on motorists.
Across Abuja and Lagos, retail petrol prices have surged by an average of 6.8%, climbing from ₦890 to ₦955 per litre in one week.
In the capital, Adova Plc raised its pump price from ₦899 to ₦945 per litre, while AYM Sharfa increased to ₦955 per litre. Some independent stations went even higher. RYBN Station in Nyanya-Karshi dispensed fuel at a staggering ₦997 per litre, up from ₦920 last week.
For many drivers, the price hike feels like betrayal after earlier optimism that Dangote’s entry into local supply would force prices down.
Nigerians caught between hope, hard reality
At AYM Station in Karu, motorist John Ogaba voiced a frustration shared by millions:
“We were hopeful that Dangote’s direct supply would bring down prices. Now it’s climbing again, it feels like a moving target.”
As the nation’s largest private refinery battles to stabilise supply, experts say Nigeria’s transition to CNG logistics could eventually reduce costs and inflationary pressure, but only if production and distribution align with market realities.
For now, Nigerians are caught between hope and hard economics, waiting to see if Dangote’s bold energy gamble will finally deliver the relief it promised.
Source: Getty Images
A previous report by Legit.ng disclosed that marketers blamed depot operators for the hike in prices, threatening to import petrol to crash prices.
Checks by Legit.ng show that petrol prices are dangling close to N1,000 per litre, with filling stations such as MRS selling at N910 per litre.
Dangote refinery faces fresh supply issues
Legit.ng earlier reported that Several filling stations, especially those selling petrol from the 650,000 Dangote Refinery, increased their prices.
The PMS price hikes came amid supply setbacks by the refinery and a rise in depot prices, which have pushed prices above N865 per litre.
Legit.ng gathered that MRS outlets increased petrol prices from N860 per litre to N867, while AP, another Dangote Refinery partner, raised its prices from N865 to N870 per litre.
Proofreading by Funmilayo Aremu, copy editor at Legit.ng.
Source: Legit.ng
