Nigeria’s mega Dangote Refinery has remained mum over its unmet self-imposed August 15, 2025, deadline to begin nationwide premium motor spirit and automotive gas oil products nationwide.
The 650,000-barrel-per-day refinery had on June 15 announced a plan to roll out 4,000 compressed natural gas trucks for nationwide fuel and diesel distribution to customers.
The oil firm, located in Ibeju Lekki, had said that the scheme, when started, would gulp its N720 billion annual investment.
Dangote Refinery added that yearly, the initiative would save Nigerians N45 per litre in logistics costs, amounting to N1.2 trillion in annual ‘free distribution costs.’
Despite the supposed benefits of the Dangote Fuel Distribution scheme, it has attracted mixed reactions from marketers, retailers, and suppliers whose businesses are directly affected by the initiative.
DAILY POST reports that nearly two weeks has passed after the Dangote refinery fuel distribution kickoff was stalled.
Confusion over Dangote Refinery’s CNG trucks delivery
Outside speculations, Dangote Refinery has yet to officially speak on the reason for the delay of the scheme, which Aliko Dangote, the president of the $20 billion refinery, called a major ‘shakeup’ of Nigeria’s downstream oil sector, which has not come to fruition.
“It’s going to be one of the biggest changes in the country— not a price cut, but a full-scale overhaul,” he said after President Bola Ahmed Tinubu visited his plant.
On August 11 that the company had received delivery of the CNG trucks shipment.
However, the number of CNG trucks received by Dangote Refinery has remained unknown, though reports put it at 1000 on Sunday, up from around 450.
Marketers split over Dangote’s fuel distribution
The expected impacts of the fuel distribution scheme have been greeted with mixed sentiments by stakeholders.
The National Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gillis Harry, and the National President of the Independent Petroleum Marketers Association of Nigeria, Abubakar Maigandi, in an exclusive interview, differed on the impact of Dangote refinery’s fuel distribution scheme.
Speaking, Gillis-Harry did not mince words to laud Dangote Refinery for the initiative.
He, however, dismissed the initiative’s expected fuel price reduction claim.
According to him, despite Aliko Dangote’s implementation of a similar initiative in the cement industry, prices of the product had continued to rise.
He noted that Dangote Refinery is in dialogue with marketers, retailers, and depot owners to mitigate the expected disruption, which could result in massive losses of jobs.
“Dangote had said that on the 15th of August, 2025, he would roll out petrol and diesel without transportation burden.
“From Petroan’s perspective, we welcome the initiative.
“However, we also counsel against the possible consequences of the scheme.
“PETROAN, as an organisation, we wish him well, and we want him to succeed, but we want this to trickle down.
“If on the 15th he has not started, that doesn’t mean that he wants to shelve the idea of fuel distribution.
“We just hope that he is looking out to meet with all stakeholders so that he can feel our impact.
“Our advice today is that the Dangoote refinery is big enough to refine adequately.
“We have storage facilities owned by the Depot and Petroleum Products Marketers Association of Nigeria, Major Energy Marketers Association of Nigeria, Petroleum Products Retail Outlets Owners Association of Nigeria, and IPMAN.
“Let the logistics be left for the National Association of Road Transport Owners, Nigeria Union of Petroleum and Natural Gas Workers.
“We have a similar situation in cement; it has not in any way impacted the price of the products downwards; rather, it is going upward.
“It is simple: when one company is doing every segment of the business, the chances of monopolistic tendencies and price control will come in. That I don’t think would reduce any petrol price,” he disclosed.
Meanwhile, Maigandi is optimistic that the scheme, when it begins, will reduce logistics costs.
He noted that marketers are in a waiting game for Dangote Refinery.
“We are still waiting for Dangote to kick off the scheme.
“I believe as soon as the company addresses all its problems, they will start loading.
“According to Dangote, there is a possibility that fuel prices will go down due to the initiative because he has pledged to take away the transportation fare.
“Which means it would be lower than what people were buying before,” he stated.
The spokesperson of Dangote Group, Anthony Chijiena, has not responded to the message as of the time of filing this report.
DAILY POST reports that retail fuel price stood between N885 and N910 per litre in Abuja as of Monday evening.
Meanwhile, the global crude oil price traded for $68.47 and $64.47 for Brent and West Texas Intermediate crude futures as of 2:45 am on Tuesday, according to Oilprice.com.
