The Dangote Petroleum Refinery has launched a direct fuel distribution scheme with the rollout of more than 1,000 Compressed Natural Gas-powered trucks.

The programme, which coincides with the refinery’s one-year milestone in petrol production, is aimed at lowering transport expenses, cutting pump prices, and ensuring steady supply across Nigeria. The kickoff had been delayed from August due to shipping constraints in China, where the trucks were sourced.

In the first stage, deliveries will focus on Lagos, Abuja, Rivers, Delta, Edo, Kwara, and states in the South-West. Petrol prices in these areas are expected to fall to between N841 and N851 per litre, while the refinery has set its gantry price at N820 per litre.

Dangote officials said the use of CNG-powered trucks could save the country more than N1.8tn annually, as well as create new jobs, revive idle filling stations, and ease inflationary pressures on businesses and households.

Independent Petroleum Marketers Association of Nigeria (IPMAN) members have expressed support, noting that many of their stations have already signed up for direct supply. IPMAN President, Abubakar Shettima, said the move would benefit the public, stressing that cheaper prices remain their main concern.

However, the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) opposed the price reduction, warning that it could weaken competition. The group also alleged that Dangote sold petrol to foreign traders at cheaper rates than local distributors.

Dangote Group rejected the claims, insisting that its priority is to stabilise the Nigerian fuel market. It further accused some CNG suppliers of attempting to frustrate its rollout by inflating gas prices.

Despite the criticism, the refinery said it plans to increase its fleet to 10,000 trucks before the year ends, positioning the scheme as a game-changer for the economy and millions of consumers.