Dangote Refinery Launches CNG-Powered Trucks for Fuel Distribution

The Dangote Refinery and Petrochemicals will today roll out its fleet of Compressed Natural Gas (CNG) trucks, marking the start of nationwide distribution of Premium Motor Spirit (PMS).

The refinery had earlier announced in August that it received the first batch of its 4,000 CNG-powered trucks, initially scheduled to begin operations on August 15.

Speaking during a courtesy visit by the AfricaRice Centre to his Lagos office on Sunday, Aliko Dangote, President of the Dangote Group, said the adoption of direct fuel distribution was driven by both strategy and necessity. He noted that bypassing third-party carriers would reduce dependency, cut costs, and ensure Nigerians have better access to fuel.

Dangote explained that the company rejected the Single Point Mooring (SPM) offshore distribution system due to high handling charges.

“If the Dangote Refinery were to load 40 million litres of PMS and 15 million litres of AGO (diesel) via the Single Point Mooring at an extra cost of N75 per litre, it would amount to approximately N1.5 trillion annually in avoidable charges. By contrast, utilising gantry loading and direct trucking eliminates these costs entirely,” the company said in a statement.

The N720 billion CNG truck initiative, launched in August 2025, is expected to significantly lower logistics costs, reduce the environmental footprint of fuel distribution, and support over 42 million micro, small, and medium enterprises (MSMEs) by reducing energy costs. The trucks are powered by locally supplied CNG from Tetracore Energy Group and are designed to deliver refined products directly from the refinery.

Meanwhile, last week, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) accused the refinery of offering lower prices to international buyers while charging higher rates locally, warning that Dangote’s distribution model could sideline marketers.

Dangote, however, dismissed the claims, insisting that cutting out intermediaries was a national imperative to ensure transparent, affordable, and efficient fuel delivery.