The Traffic

Dangote Refinery Acquires 4,000 CNG Tankers to Kickstart Fuel Distribution

By Achimi muktar 

In what could be a turning point for Nigeria’s fuel distribution system, the Dangote Petroleum Refinery has announced the deployment of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers — a move set to shake up the energy market and redefine access to Premium Motor Spirit (PMS) and diesel across the country.

The announcement, made via a press release on Sunday, signals the start of a national logistics revolution scheduled to kick off on August 15, 2025. At the heart of this bold plan is a mission: to deliver fuel more efficiently, more affordably, and to more places — especially underserved communities.

"This initiative marks a major milestone in our vision to revolutionise Nigeria’s energy sector," the refinery stated. "Dangote Refinery is dedicated to ensuring that no place is left behind."

The CNG tankers are designed to service not just fuel marketers and petrol stations, but also major industries such as telecoms, aviation, and manufacturing, ensuring smoother supply chains and reduced operational costs. Even more striking is the refinery’s pledge to provide free logistics support for PMS and diesel deliveries — a strategic move that could help crash fuel prices and ease inflationary pressures nationwide.

But the logistics overhaul doesn’t stop there.

The Dangote group is also investing in a network of CNG stations (daughter booster stations), backed by over 100 dedicated tankers to streamline nationwide distribution. The goal? To eliminate middlemen, reduce fuel costs, and put power back into the hands of businesses and consumers.

Industry experts have lauded the move as a potential game-changer — one that could revitalise thousands of inactive filling stations, stimulate small and medium-sized businesses (SMEs), and inject new life into rural economies.

“Our goal is to provide equitable access to affordable fuel for all Nigerians, regardless of location, making energy more accessible and sustainable for everyone,” the company said.

In an even bolder gesture, the refinery has introduced a credit facility for bulk buyers. Marketers purchasing a minimum of 500,000 litres can now receive an additional 500,000 litres on credit for two weeks — provided a bank guarantee is in place. This credit policy is expected to further stabilise supply, encourage direct purchase from the refinery, and lessen the dependency on volatile global supply chains.

Backed by the Federal Government’s Naira-for-Crude initiative, the Dangote Refinery says it remains committed to supporting the Tinubu administration’s Renewed Hope Agenda, calling the effort a reflection of “bold and reformative economic policies.”

With global fuel prices still on shaky ground, this local initiative might just be the breath of fresh air Nigeria’s downstream petroleum sector has long awaited.

If you run a petrol station, manage a factory, operate in telecoms, or simply care about lower fuel prices — Dangote’s move isn’t just good news, it’s potentially transformational.