In a major move aimed at averting an emerging fuel crisis, the Dangote Petroleum Refinery has announced it will begin nationwide distribution of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel) starting August 15.
The announcement comes as fuel scarcity fears grow across Lagos and other parts of Nigeria, following a looming strike by tanker drivers and fuel marketers over the controversial E-Call Up system imposed by the Lagos State Government. The unions have vowed to halt loading operations from today, citing the N12,500 fee per truck as exorbitant—particularly along the Lekki-Epe Corridor.
In response, the Lagos State Government defended its position, insisting the system would proceed as planned, and accused union leaders of charging drivers up to N41,000 per truck for non-existent services.
Amid this standoff, Dangote Refinery revealed a sweeping logistics plan, including the deployment of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers. The company said the move is designed to boost delivery capacity and ensure steady access to fuel across Nigeria, especially in crisis-prone regions.
Key Elements of the Initiative:
- Open access to marketers, filling station owners, manufacturers, telecom operators, aviation companies, and other bulk fuel consumers.
- Credit scheme for bulk buyers purchasing 500,000 litres and above.
- Support infrastructure, including new daughter booster CNG stations and over 100 dedicated CNG-powered tankers.
- Free product delivery to remove logistics bottlenecks and reduce operating costs.
“This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria’s economic development,” the Dangote Group said in its Sunday statement.
The refinery’s independent fuel distribution model could undermine the revenue model of the E-Call Up truck parks established by Lagos State, as more marketers may shift allegiance to Dangote’s more efficient logistics structure.
This intervention is seen as part of a larger economic strategy by Aliko Dangote, who recently hinted at a nationwide ‘shakedown’, aimed at disrupting inefficiencies in Nigeria’s fuel distribution system. The move is also expected to revitalise dormant filling stations, tame inflation, and stimulate small and medium-scale enterprises, aligning with the reform agenda of President Bola Ahmed Tinubu.
As tensions rise over fuel accessibility and logistics regulations, the Dangote Refinery’s entry into direct distribution could prove to be a game-changer in Nigeria’s downstream sector.
