Dangote Refinery has made a significant change by lowering fuel prices and starting direct distribution. This initiative promises cheaper petrol and a transformation in Nigeria's supply chain.
Dangote Petroleum Refinery will begin direct fuel distribution to Nigerian consumers on Monday, September 15, offering significantly reduced petrol prices through a fleet of 4,000 Compressed Natural Gas trucks across 11 states.
The refinery, which processes 650,000 barrels of oil per day, has established a gantry price of N820 per litre. As a result, retail prices are set at N841 per litre in Lagos and the southwestern states, while in Abuja, Rivers, Delta, Edo, and Kwara, the retail price is N851 per litre.
This represents savings of N19 in Lagos and the southwest, and N34 in Abuja and other participating regions.
Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Industries Limited, confirmed that the initial rollout will cover Lagos, the southwestern states, the Federal Capital Territory, as well as Kwara, Delta, Rivers, and Edo.
A nationwide expansion will follow as additional trucks become available. The launch was originally scheduled for August 15 but was postponed due to logistical challenges in China.
The direct distribution model bypasses traditional fuel marketers by delivering products straight to registered filling stations at no logistics cost to operators.
Dangote estimates this approach will save Nigeria's economy approximately N1.8 trillion annually while creating over 15,000 jobs in the fuel distribution sector.
Devakumar Edwin, the Vice President for Oil and Gas at Dangote Industries, stated that the CNG-powered fleet is a strategic investment aimed at reducing transportation costs and making refined products more affordable.
The company has invested over N720 billion in its distribution program, which is designed to deliver 65 million liters of petroleum products each day.
The initiative has drawn criticism from the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), which called the direct distribution scheme a "Greek gift" intended to undermine union influence and limit competition.
NUPENG accused Dangote of preventing newly recruited drivers from joining the union, leading to a brief strike resolved through a Memorandum of Understanding in early September.
However, the Nigerian Labour Congress has praised Dangote Refinery as a transformative national asset, crediting the company with helping stabilize fuel prices following the government's removal of petrol subsidies.
The union has urged the Federal Government to prioritize selling crude oil to Dangote in naira rather than forcing dollar-based purchases.
Dangote Refinery's direct distribution launch represents a watershed moment in Nigeria's pursuit of energy independence and affordable fuel.
By controlling the entire supply chain from production to retail, Africa's largest refinery could fundamentally reshape Nigeria's petroleum sector and establish a model for resource optimization across the continent.
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