By Divine Sam
Nigeria’s flagship Dangote Refinery has remained silent after missing its self-declared August 15, 2025, deadline to begin nationwide distribution of premium motor spirit (PMS) and automotive gas oil (AGO).
The 650,000-barrel-per-day facility, based in Ibeju-Lekki, had announced in June that it would deploy 4,000 compressed natural gas (CNG) trucks to supply fuel and diesel directly to customers across the country. The ambitious plan was said to require an annual investment of N720 billion, aiming to eliminate middlemen and reduce logistics costs by N45 per litre—a potential annual savings of N1.2 trillion.
However, nearly two weeks after the planned rollout date, the scheme has yet to commence, with no official explanation provided by the Dangote Group.
Confusion Surrounds CNG Truck Deployment
Earlier this month, reports indicated the refinery had taken delivery of the CNG trucks intended for distribution. As of August 11, approximately 1,000 trucks had arrived, up from around 450 earlier. Yet, operational deployment has not followed, raising concerns about the status and readiness of the distribution initiative.
Stakeholders React to Delayed Launch
The delay has stirred mixed reactions within the oil and gas sector. While some stakeholders welcome the move as a transformative step, others are skeptical about its impact on fuel pricing and market fairness.
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), praised the initiative but questioned whether it would actually lead to lower fuel prices. Drawing a parallel to the cement industry, he noted that despite similar logistics controls, cement prices have only gone up.
“Let the refinery refine; logistics should be left to transport unions and existing stakeholders,” Gillis-Harry advised, warning that centralizing the entire supply chain under one company risks monopolistic practices.
He further urged Dangote to collaborate more closely with existing marketers and depot owners to avoid massive job losses and industry disruption.
On the other hand, Abubakar Maigandi, National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), remained hopeful.
“We believe Dangote’s plan to absorb transportation costs could significantly reduce fuel prices,” Maigandi told DAILY POST, noting that marketers are on standby for the official commencement.
No Comment from Dangote Group
Efforts to obtain clarification from Anthony Chiejina, spokesperson for the Dangote Group, were unsuccessful as of the time of reporting.
Meanwhile, retail fuel prices in Abuja remain high, ranging between N885 and N910 per litre as of Monday evening. Globally, crude oil prices stood at $68.47 for Brent and $64.47 for WTI, according to Oilprice.com
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