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Dangote Refinery bypasses distributors, opens doors to all offtakers

  • Deploys 4,000 CNG Tankers To Enhance Distribution Network Nationwide

Sopuruchi Onwuka

The Dangote Refinery has finally dismantled all distribution roadblocks in its business, offering direct purchase of key transportation fuels to retailers and bulk offtakers in the domestic fuel market.

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The company declared in a statement on Sunday that it was deploying some special tankers to enhance distribution of compressed natural gas (CNG) to deepen the market for motorists that run on the clean fuel.

Under the new arrangement which takes effect on August 15, marketers, petrol dealers, manufacturers, telecoms firms, aviation players, and other large users of petrol and diesel would now approach the refinery for direct purchase without going through distributors.

The Oracle Today had earlier reported plans by the refinery to launch retail operations but it is not certain that the new arrangement would displace the plan confirmed by inside sources that would entail floating a strategic subsidiary to acquire and operate filling stations across the country.

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The company declared that the commencement of the national initiative is designed to a significantly transform Nigeria’s fuel distribution landscape with free logistics to boost distribution network.

“Effective 15th of August 2025, the Refinery will begin the distribution of Premium Motor Spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country,” the company declared in the statement.

The refinery said it invested in the procurement of 4,000 brand-new CNG-fired tankers to ensure smooth take-off of this scheme.

“This phase of the programme 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 programme 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.

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“Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support. 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 foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery,” the company stated.

The refinery also pledged credit facility to offtakers purchasing a minimum of 500,000 litres, allowing them to obtain an additional 500,000 litres on credit for two weeks, under bank guarantee.

“This pioneering effort marks a major milestone in our vision to revolutionise 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 revitalise 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,” the company explained.

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Dangote stated that the initiative is in line with the Renewed Hope Agenda of President Bola Ahmed Tinubu, “reflecting our shared commitment to economic progress, stability, and inclusive development.”

“We sincerely thank the Federal Government for its continued support, especially through the Naira-for-Crude scheme, which has helped stabilize fuel supply amid global price volatility. It marks a major revolution in the midstream and downstream sectors and stands as a key example of President Bola Tinubu’s bold and reformative economic policies.

“We invite marketers, petrol dealers, manufacturers, telecom companies, and all key stakeholders to embrace this landmark initiative,” the company stated. 

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