The Dangote Refinery has unveiled a bold new fuel distribution strategy that bypasses traditional marketers, opting instead to supply petrol and diesel directly to major consumers across Nigeria.
Effective August 15, 2025, the 650,000 barrels-per-day facility will begin supplying Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) directly to manufacturers, telecom companies, aviation operators, and large-scale users—eliminating the need for middlemen.
“This is a transformative national initiative,” the company announced on X. “It marks a new era in Nigeria’s energy sector with direct supply, free logistics, and a wide-reaching distribution network.”
To power the rollout, Dangote Refinery has acquired 4,000 new CNG-powered tankers and is building compressed natural gas (CNG) booster stations across the country, supported by over 100 CNG tankers.
Key highlights of the initiative include, free logistics for all buyers, credit facility for bulk purchases of 500,000 litres with a two-week repayment window, Improved fuel access to underserved areas and idle petrol stations and Lower production costs for critical sectors and MSMEs
The refinery said the initiative aligns with President Bola Tinubu’s Renewed Hope Agenda and praised government support through the Naira-for-Crude scheme, which has helped stabilize fuel supply amid global volatility.
This move is expected to lower inflation, boost job creation, revive idle fuel stations, and attract investor confidence into Nigeria’s downstream petroleum sector.
Until now, marketers like MRS, AP Ardova, and Optima were responsible for lifting products from the refinery to end users.
Just last week, Aliko Dangote, President of the Dangote Group, pledged sweeping reforms in Nigeria’s oil and gas downstream market—and this rollout marks the first major step.
