In a major move set to reshape Nigeria’s fuel distribution landscape, Dangote Petroleum Refinery has announced plans to begin the direct distribution of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel) to large-scale users across the country, beginning August 15, 2025.
According to a statement released on Sunday via the refinery’s official X (formerly Twitter) account, the initiative will see the 650,000 barrels per day facility bypass petroleum product marketers and deliver fuel directly to sectors such as manufacturing, telecommunications, aviation, and other heavy consumers.
The company stated that the distribution will come with free logistics support, aimed at reducing costs for end-users and expanding access nationwide.
“Dangote Petroleum Refinery is pleased to announce the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution network,” the statement read in part.
To facilitate this new model, Dangote Refinery said it has acquired 4,000 brand-new compressed natural gas (CNG)-powered tankers. It is also investing in CNG booster stations and deploying over 100 CNG tankers to aid efficient fuel delivery across Nigeria.
The refinery described the plan as a strategic step to eliminate distribution bottlenecks, improve energy access, and support Nigeria’s economic development. It noted that fuel stations buying directly from Dangote will benefit from the enhanced logistics support.
Key players in industries such as telecoms, manufacturing, and aviation will be able to purchase directly from the refinery, a move the company believes will reduce operational costs, cut inflation, and boost economic activities.
In a bid to support bulk buyers, Dangote Refinery also announced a credit facility for customers purchasing a minimum of 500,000 litres. These buyers will be entitled to an additional 500,000 litres on two-week credit backed by bank guarantees.
“This effort is part of our broader commitment to making fuel more accessible and affordable, especially for underserved communities. It also aligns with the Renewed Hope Agenda of President Bola Ahmed Tinubu,” the statement added.
The company praised the Federal Government for its backing, particularly under the Naira-for-Crude exchange arrangement, which it said has helped stabilize fuel supply in the face of global oil price fluctuations.
Until now, fuel marketers such as MRS, Optima, and AP Ardova were responsible for lifting products from the refinery for nationwide distribution. With this new approach, Dangote is aiming to revitalise dormant fuel stations, create jobs, support small businesses, and boost investor confidence in Nigeria’s petroleum downstream sector.