By Opeoluwa Okudero 
The Dangote Petroleum Refinery is set to begin the distribution of Premium Motor Spirit (PMS) and diesel across Nigeria starting August 15, 2025—marking a major step in the company’s long-anticipated downstream strategy.
The company confirmed that it will deploy over 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to ensure wide and reliable fuel distribution. The move signals more than just product rollout; it is an ambitious infrastructure play intended to resolve longstanding logistics bottlenecks and reshape Nigeria’s fuel supply landscape.
A Distribution Strategy Beyond Fuel Sales
The refinery’s distribution plan includes free product delivery to off-takers—marketers, petrol station dealers, manufacturers, telecom operators, and aviation firms. The goal, according to the company, is to reduce logistics costs and improve energy affordability across sectors. It also aims to revive dormant filling stations and empower small businesses by enhancing product accessibility.
Further boosting its logistics footprint, the company revealed it will establish “daughter booster” CNG stations and a dedicated fleet of over 100 gas-powered tankers. A credit scheme will also be introduced for bulk buyers purchasing a minimum of 500,000 litres—underscoring a volume-driven approach to market penetration.
Reform, Not Just Supply
While the fuel distribution launch comes amid rising pressure on Nigeria’s energy infrastructure, it also reflects Dangote Group’s larger ambition to trigger a structural shift in the downstream oil sector.
“This is not just about price cuts,” said Aliko Dangote, President of the Dangote Group. “It’s about a major shake-up in how fuel is sourced, moved, and delivered across the country.”
The refinery’s announcement follows President Bola Tinubu’s visit to the $20 billion facility in Lekki, Lagos—an endorsement many view as a tacit vote of confidence in the refinery’s central role in national economic reform.
Timing and Tensions
The move comes at a crucial time. Tanker drivers in Lagos have recently threatened to halt operations over rising access costs, including a N12,500 charge for the E-Call Up system along the Lekki-Epe corridor. By offering free delivery and CNG-powered alternatives, the refinery may help reduce friction within fuel supply chains—while also lowering Nigeria’s dependence on diesel-powered transport logistics.
Industry watchers believe the initiative could not only ease inflationary pressure but also support the Tinubu administration’s broader reform push—particularly in improving energy accessibility and local refining capacity.
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