By Kolawole Ojebisi
Dangote Refinery has announced a shift from its initial mode of distribution of premium motor spirit and automotive gas oil (diesel).
This is as the refinery signalled its readiness to sidestep middlemen to ensure direct transaction of businesses with manufacturers, telecommunications firms, the aviation sector and other large users of its products.
The indigenous facility, which is producing 650,000 barrels per day, disclosed this in a statement on its X account on Sunday.
According to the statement, the Africa’s largest refinery, is planning to begin the implementation of the initiative on 15th August 2025.
By implication, Dangote Refinery would be responsible for the distribution of petroleum products directly to heavy users, ditching middlemen such as petroleum products marketers.
Highlighting the benefits of the initiative to its targeted users, the refinery said logistics costs would be free and the move is expected to boost the distribution network.
“Dangote Petroleum Refinery is pleased to announce the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution landscape. Effective 15th of August 2025, the refinery will begin the distribution of premium motor spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecom firms, aviation, and other large users across the country, with free logistics to boost the distribution network.
“To ensure smooth take-off of this scheme, Dangote Refinery has invested in the procurement of 4,000 brand-new compressed natural gas (CNG)-powered tankers. This phase of the program will continue over an extended timeframe. The refinery is also investing in compressed natural gas (CNG) stations, commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers across the country to ensure seamless product distribution.
“This strategic program is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria’s economic development. It affirms our dedication to improving the availability and affordability of fuel in support of broader efforts to strengthen the economy and improve the well-being of all Nigerians,” the statement said.
It added, “Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support.”
It explained further: “Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and fostered economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery.
“In addition, the refinery will offer a credit facility to those purchasing a minimum of 500,000 liters—allowing them to obtain an additional 500,000 liters on credit for two weeks, under bank guarantee.
“This pioneering effort marks a major milestone in our vision to revolutionize Nigeria’s energy sector. Dangote Refinery is dedicated to ensuring that no place is left behind. Our goal is to provide equitable access to affordable fuel for all Nigerians, regardless of location, making energy more accessible and sustainable for everyone, wherever they may be.
“It is expected to revitalize previously inactive petrol stations, thereby driving job creation, stimulating small and medium-sized enterprises (SMEs), increasing government revenue, improving fuel access in rural and underserved communities, and strengthening investor confidence in Nigeria’s downstream petroleum sector.”
Prior to this initiative by Dangote Refinery, filling station partners such as MRS, Optima, AP Ardova, and others lifted PMS and diesel from the refinery to end users.
This announcement comes days after the President of Dangote Group, Aliko Dangote vowed to implement major shakeups in the country’s oil and gas downstream sector.
