Private petroleum depots in Lagos and its environs experienced low activity recently as the Dangote Petroleum Refinery commenced direct supplies of petrol to marketers.
The refinery’s rollout has caused private depot operators to hold back, anticipating benefits from the new distribution system.
The refinery has deployed over 1,000 Compressed Natural Gas (CNG)-powered trucks for logistics-free fuel delivery, aiming to revolutionize the downstream petroleum sector in Nigeria.
The direct distribution scheme began on September 15, 2025, marking the refinery’s first anniversary of petrol production. This new system is designed to cut fuel distribution costs, reduce pump prices, and improve supply consistency nationwide.
Dangote Refinery’s CEO, Aliko Dangote, highlighted that Nigeria has struggled with persistent fuel queues since 1975—an issue the refinery’s operations are steadily resolving.
Despite challenges during the project’s development, Dangote stated the venture was driven by belief in Nigeria and Africa’s potential.
The refinery is initially supplying 11 states with recommended pump prices of N841 to N851 per litre, while the gantry price stands at N820 per litre.
This pricing strategy undercuts previous supply models, sending depot prices downward due to local market forces.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has expressed readiness to receive direct supplies from Dangote trucks at various retail outlets, with many marketers registering for inclusion.
IPMAN welcomed the price reductions, saying the focus is on making fuel affordable for the masses.
The refinery’s efforts are expected to move up to 65 million liters of petrol daily, create about 15,000 jobs, and generate annual savings over N1.7 trillion for the Nigerian economy.
It also seeks to revive dormant petrol stations and challenge the Nigerian National Petroleum Company’s (NNPC) control over retail pricing.
The project has also faced opposition, including a strike by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), which was suspended after government-led negotiations ensuring worker protections and union regulations.
Dangote Refinery is Africa’s largest single-train facility, processing 650,000 barrels of crude oil daily.
Since opening in 2024, it has significantly boosted Nigeria’s energy security by reducing dependency on imports and stabilizing fuel supply.
