Dangote Refinery Silent as Fuel Distribution Rollout Misses August 15 Deadline

Nigeria’s 650,000-barrel-per-day Dangote Refinery has maintained silence after failing to meet its self-imposed August 15, 2025 deadline to commence nationwide distribution of premium motor spirit (PMS) and automotive gas oil (AGO).

Back in June, the refinery announced plans to deploy 4,000 compressed natural gas (CNG) trucks for nationwide delivery of petrol and diesel—a scheme projected to cost N720 billion annually. According to the company, the initiative was expected to save Nigerians about N45 per litre in logistics, translating into N1.2 trillion yearly in reduced distribution costs.

Nearly two weeks after the scheduled rollout, the plan remains stalled without official explanation. The silence has heightened uncertainty, despite President Bola Ahmed Tinubu’s recent visit to the facility, during which Aliko Dangote described the project as a major “shakeup” of Nigeria’s downstream oil sector. “It’s going to be one of the biggest changes in the country—not a price cut, but a full-scale overhaul,” Dangote had said.

Reports indicate that the refinery received shipments of CNG trucks ahead of the August 15 date. However, the actual number of trucks delivered remains unclear, with figures ranging between 450 and 1,000 as of last weekend.

Mixed Reactions from Marketers

The fuel distribution plan has drawn mixed responses from industry stakeholders. While some welcome the initiative as a potential cost-saving measure, others caution it could disrupt existing supply chains and trigger monopolistic practices.

President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gillis-Harry, commended the move but dismissed expectations of immediate price cuts. He argued that Dangote’s similar model in the cement industry had not reduced prices.
“Dangote promised rollouts on August 15 without transportation burden. From PETROAN’s perspective, we welcome the initiative, but counsel against possible consequences,” he told newsmen. “When one company dominates every segment of the business, monopolistic tendencies and price control are likely. That may not reduce petrol prices.”

He further urged collaboration with other associations—including DAPPMAN, MEMAN, IPMAN, and logistics unions like NARTO and NUPENG—to safeguard jobs and prevent disruptions.

On the other hand, IPMAN President, Abubakar Maigandi, was more optimistic, insisting that the scheme could lower logistics costs and ease pump prices. “We are still waiting for Dangote to kick off. Once the company addresses its challenges, loading will begin. By removing transportation fare, prices should be lower than what people currently pay,” he told newsmen.

Public and Market Concerns

As of Monday evening, petrol retailed between N885 and N910 per litre in Abuja. Meanwhile, global crude oil prices stood at $68.47 for Brent and $64.47 for West Texas Intermediate as of 2:45 a.m. Tuesday, according to Oilprice.com.

Efforts to obtain comments from Dangote Group spokesperson, Anthony Chijiena, were unsuccessful at the time of filing this report.

For now, Nigerians and industry players remain in a waiting game—uncertain when or how, the much-publicised fuel distribution rollout will eventually take off.