The Dangote Petroleum Refinery is about to shake up Nigeria’s fuel market with a bold nationwide distribution plan. Starting August 15, 2025, the refinery will supply petrol (PMS) and diesel directly to consumers. The initiative aims to cut fuel costs, eliminate logistics bottlenecks, and expand access to underserved areas, especially rural communities.
Here are five key facts you need to know:
1. Free Fuel Delivery Nationwide
Dangote will deliver PMS and diesel to all 36 states and the Federal Capital Territory at no logistics cost. It will deploy 4,000 Compressed Natural Gas (CNG) tankers for this purpose. This move will save transport costs across the fuel value chain and reduce the retail price of fuel.
2. Bulk Buyers Will Get Extra 500,000 Litres on Credit
The refinery will give a two-week credit of 500,000 litres to buyers who purchase at least that volume upfront. This offer, backed by a bank guarantee, targets large-scale users like manufacturers, telecom firms, aviation companies, and fuel marketers. The credit facility is designed to boost fuel access and drive sales volume.
3. KYC Registration Ends August 15
All stakeholders—including marketers, manufacturers, and depot-level buyers—must complete Know Your Customer (KYC) verification. The registration runs from June 16 to August 15, 2025. Only registered users will be able to participate in the new distribution programme.
4. Cleaner Fuel and Greener Distribution
Dangote will use CNG-powered tankers, reducing carbon emissions and promoting clean energy logistics. The refinery also produces Euro V and VI grade fuels. These high-quality products enhance engine performance and reduce pollution.
5. Expect Cheaper Fuel and Better Quality
By cutting out third-party logistics and middlemen, the refinery promises lower pump prices. It also aims to reduce fuel adulteration by delivering sealed, complete products directly to end users. This model will support independent station owners and small businesses by improving product quality and supply reliability.
Depot Marketers Raise Concerns Over Job Cuts
This initiative supports key national energy objectives such as the Presidential Compressed Natural Gas Initiative (PCNGI), the Naira-for-Crude scheme, and the Nigeria First Policy. These frameworks aim to cut import dependence, drive cleaner fuel adoption, and streamline downstream operations for greater national efficiency.
However, the announcement has unsettled many depot-level marketers, who act as intermediaries between station owners and fuel depots. They warn that Dangote’s direct-to-retail distribution model, with free logistics and credit incentives, could displace their role in the value chain. The group fears widespread business losses and job cuts if intermediaries are excluded from bulk transactions.
