Dangote Refinery, Africa’s largest petroleum refinery, has unveiled plans to begin direct distribution of premium motor spirit (petrol) and automotive gas oil (diesel) to key industrial and commercial sectors starting August 15, 2025. This strategic move aims to bypass traditional marketers, who have often been seen as bottlenecks in the fuel supply chain.
The refinery announced via its official X account that the initiative will target manufacturers, telecommunications companies, the aviation industry, and other major fuel consumers across Nigeria. In a bid to enhance efficiency and reduce costs, logistics fees will be waived entirely.
“Dangote Petroleum Refinery is pleased to announce the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution landscape,” the statement read.
To support the rollout, Dangote Refinery has procured 4,000 new compressed natural gas (CNG)-powered tankers. Additionally, the company is investing in a network of daughter booster stations—CNG refueling points—and a fleet of over 100 CNG tankers nationwide to ensure uninterrupted and eco-friendly distribution.
The refinery emphasized that this program is part of a broader commitment to removing logistics costs, increasing energy efficiency, promoting sustainability, and fostering national economic growth. The initiative also promises to improve fuel availability and affordability, which are critical to supporting manufacturing and other sectors in reducing production expenses and curbing inflation.
Importantly, all petrol stations purchasing directly from Dangote Refinery will benefit from the enhanced logistics support. Manufacturers, telecom firms, and other significant users will be able to purchase fuel directly, with a credit facility available for buyers acquiring a minimum of 500,000 liters—allowing an additional 500,000 liters on a two-week credit term backed by a bank guarantee.
The refinery stated, “This pioneering effort marks a major milestone in our vision to revolutionize Nigeria’s energy sector. Our goal is to provide equitable access to affordable fuel for all Nigerians, irrespective of their location.”
The new distribution model is expected to reactivate dormant petrol stations, spur job creation, boost small and medium enterprises (SMEs), increase government revenues, and enhance investor confidence in Nigeria’s downstream petroleum sector. It aligns closely with President Bola Ahmed Tinubu’s Renewed Hope Agenda, reflecting shared goals of economic stability and inclusive development.
Dangote Refinery also acknowledged the Federal Government’s support, particularly the Naira-for-Crude scheme, which has helped stabilize fuel supplies amid global price volatility. The refinery’s move will phase out its partnerships with existing filling station operators like MRS, Optima, and AP Ardova.
This announcement follows recent remarks by Dangote Group President Aliko Dangote, who pledged significant reforms in Nigeria’s oil and gas downstream industry, signaling a bold shift in the sector’s operations.
