The Dangote Refinery and Petrochemicals is set to begin nationwide distribution of Premium Motor Spirit (PMS) using its new fleet of Compressed Natural Gas (CNG) trucks. The move, announced by the company’s chairman, Aliko Dangote, marks a strategic shift to reduce dependency on third-party carriers.
The refinery, which received the first of its 4,000 CNG-powered trucks in August, sees this as a “national imperative.” The decision follows a public dispute with local petroleum marketers who accused the refinery of offering lower prices to international buyers while charging higher rates to domestic distributors.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) recently voiced concerns that the Dangote Refinery was bypassing their distribution network. They alleged that the refinery was not offering free product delivery to local buyers, and that its direct-to-consumer strategy was an attempt to monopolize the downstream market.
In response, Dangote defended the new distribution model, citing significant cost savings. He explained that using the traditional Single Point Mooring (SPM) system, an offshore loading method, would add an extra N75 per liter in handling fees. This, he said, would amount to an “avoidable” N1.5 trillion in annual costs.
By contrast, the company’s new fleet of CNG trucks will use gantry loading, which eliminates these costs entirely. Dangote stated that it would be irresponsible to lose N75 per liter to intermediaries who cannot guarantee the product’s delivery to Nigerian consumers.
The company’s investment in the 4,000 trucks is worth over N720 billion and is intended to lower logistics costs, reduce environmental impact, and provide more affordable energy to millions of small businesses across the country.
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