Dangote Refinery Begins Phased Receipt Of 4, 000 CNG Trucks
The Dangote Refinery has commenced phased receipt of the 4,000 Compressed Natural Gas (CNG) trucks as its petroleum products distribution operations are expected to kick off across the country.
The development forms part of the company’s logistics programme to herald product distribution this month.
The initiative hopes to transform the distribution landscape in Nigeria by reducing logistics costs and enhancing supply efficiency for customers.
In June, the Refinery said it invested over ₦720 billion to implement the landmark initiative for the nationwide distribution of petroleum products, which is expected to save Nigerians over ₦1. 7 trillion annually.
The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability.
The initiative, which eliminates transportation costs for fuel marketers and large-scale consumers, is expected to help reduce pump prices and inflation.
From 15 August, Dangote will begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers.
According to a statement from the refinery, it aims to meet Nigeria’s daily consumption of 65 million litres of refined petroleum products. This includes 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.
With the average logistics cost estimated at ₦45 per litre, the refinery will cover over N1.07trn annually in free distribution expenses.
The ₦720 billion investment also includes the establishment of nationwide CNG ‘mother and daughter’ stations, among other infrastructure, to implement the free distribution initiative.
The strategic programme forms part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development. The company noted that lower fuel distribution costs will help reduce production costs, ease inflationary pressures, and stimulate economic growth.
The initiative is also expected to resuscitate dormant filling stations, fostering job creation in the process. Over 15,000 direct jobs are projected to be created across the logistics chain, including drivers, station managers, and attendants at the CNG stations.
The refinery also emphasised that this programme would help curb cross-border smuggling of petroleum products and support a more efficient and environmentally friendly distribution system.
