Dangote Confirms Rollout Date For Nationwide Fuel Distribution, Move to Unleash N720bn CNG Trucks

Dangote Group has confirmed August 15, 2025, as the rollout date for its nationwide fuel distribution initiative. This move is part of a broader strategy to adopt cleaner energy sources and eliminate bottlenecks in fuel delivery. The company plans to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks, which are 40% cheaper to operate than diesel-powered tankers, to reduce logistics costs and enhance supply reliability .

By Rhalialt Arhuoizah

*Key Highlights of the Initiative:*

- *Investment:* N720 billion invested in acquiring CNG-powered trucks and establishing nationwide CNG "mother and daughter" stations
- *Fuel Distribution:* Daily consumption of 65 million liters of refined products, including 45 million liters of petrol, 15 million liters of diesel, and 5 million liters of aviation fuel .
- *Logistics Savings:* Expected to save over N1 trillion annually in free distribution expenses, potentially leading to lower pump prices .
- *Environmental Impact:* Adoption of CNG-powered trucks aligns with Nigeria's energy transition goals and reduces dependence on diesel-powered logistics .

*Potential Impact:*

- *Increased Efficiency:* Direct delivery model could boost supply reliability and reduce transportation costs
- *Lower Prices:* Savings from logistics costs could be passed on to consumers and bulk buyers
- *Economic Benefits:* Lower fuel costs could stimulate small and medium-sized enterprises, reduce inflation, and spur job creation .

*Concerns and Challenges:*

- *Monopolization:* PETROAN warns that Dangote's direct delivery model could "wipe out" smaller operators, leading to job losses and market consolidation
- *Competition:* Industry stakeholders are closely monitoring the situation to ensure fair competition in the downstream petroleum sector .