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– Deploys 4,000 CNG-powered tankers to break middlemen’s hold and reduce logistics costs.
– Experts predict lower pump prices and creation of over 8,000 jobs for drivers and logistics.
– Marketers warn of monopoly risk, regulators urged to ensure level playing field.
Dangote Petroleum Refinery has revealed plans to begin nationwide distribution of petrol, diesel, and other refined products starting August 15, 2025, deploying a fleet of 4,000 CNG-powered tankers and supporting infrastructure. The goal is to cut logistics costs, currently accounting for 10–30% of pump prices, and eliminate middlemen—tanker drivers, depot owners—who have historically inflated costs and hampered supply efficiency. Analysts, including Dr. Abimbola Oyarinu and energy expert Kelvin Emmanuel, describe the move as “revolutionary,” predicting it will drive down fuel prices, stabilize supply, especially in rural areas, and generate over 8,000 jobs in logistics.
However, the plan has prompted pushback from the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), which fears market monopolization, closure of independent stations, and widespread job losses—with as many as 2,100 retail outlet owners at risk if competition is unintentionally stifled. Analysts like Ayodele Oni suggest regulators should treat it as vertical integration, not monopoly, and use the Petroleum Industry Act to maintain fair competition. The refinery also plans credit facilities for bulk buyers and investment in CNG stations, signaling a strategic pivot toward efficiency and sustainability in Nigeria’s downstream sector
