A move poised to redefine Nigeria’s downstream oil sector, the Dangote Petroleum Refinery has announced it will begin the nationwide distribution of Premium Motor Spirit (PMS) and diesel from August 15, 2025. This development marks a critical milestone in the country’s effort to attain energy independence, reduce reliance on fuel imports, and curb spiraling transportation and logistics costs.
In a statement issued on Sunday, the company revealed it is rolling out an initial fleet of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers to support the distribution of refined products across Nigeria. The vehicles are part of a comprehensive strategy to deliver cleaner, more efficient fuel transportation, improve product access in underserved areas, and stimulate economic activities in critical sectors.
The refinery, the largest single-train facility in the world, noted that marketers, fuel station dealers, manufacturers, telecom firms, aviation operators, and other large-scale consumers would be given priority in this new distribution model.
“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 statement read.
The company also disclosed that logistics support — including free delivery services — would be provided as part of efforts to eliminate fuel supply bottlenecks, especially in remote areas. Additional infrastructure includes daughter booster CNG stations and a dedicated gas-powered tanker fleet of over 100 units, to support the movement of products from its Lekki-based refinery to all corners of the nation.
The refinery’s distribution initiative comes at a time of significant tension in the downstream sector. Fuel tanker drivers in Lagos State recently threatened to halt loading operations over the N12,500 fee per truck for the controversial E-Call Up system at the Lekki-Epe Corridor — a move that could have crippled petroleum distribution within the region.
However, the Dangote Group’s latest announcement appears well-timed to counter the potential disruption and inject efficiency into the supply chain. Speaking after President Bola Tinubu’s inspection visit to the $20 billion facility earlier this month, Aliko Dangote, President of Dangote Group, hinted at a sweeping “shakedown” across Nigeria’s downstream sector. Though not aimed at lowering pump prices, Dangote emphasized the overhaul was necessary to increase supply, stabilize distribution, and reduce reliance on forex-heavy imports.
The company also announced a credit scheme for bulk fuel purchasers buying 500,000 litres and above, which is expected to bring many inactive filling stations back to life. Analysts say this scheme, coupled with the introduction of free delivery and CNG-powered transport, could lower inflation, stimulate small businesses, and strengthen the economic reform policies of the Tinubu administration.
This rollout is the second major nationwide initiative by Dangote Refinery this year, following its earlier commencement of diesel and aviation fuel production in January. By including PMS in its distribution portfolio and launching free logistics support, the company is setting a precedent in private-sector-led energy reform.
Industry stakeholders have welcomed the development, noting that the refinery’s entry into PMS distribution could stabilize supply, reduce price volatility, and provide a buffer against future import shocks. Currently, Nigeria still imports a large volume of refined petroleum products despite having four state-owned refineries that remain largely inactive.
Energy economist Dr. Ifeanyi Okeke, in a conversation with PUNCH, noted:
“Dangote’s move could bring an end to fuel scarcity as we know it. By controlling both production and distribution, the refinery is positioned to disrupt the old cartel-based supply model.”
Meanwhile, consumer advocacy groups have called for proper regulatory oversight to ensure that the benefits of this new system — including the logistics subsidies — are passed down to end-users rather than being hoarded by middlemen.
With the official August 15 distribution launch date drawing near, all eyes are on Dangote Refinery to deliver on its promise of efficiency, cost reduction, and national coverage — a move many believe could reshape Nigeria’s energy landscape and accelerate the journey toward self-sufficiency in refined fuel production.