Dangote Refinery Begins Nationwide Fuel Supply with CNG Trucks
Unease is spreading among Nigerians and energy sector stakeholders as Dangote Refinery officially kicks off nationwide fuel distribution today, Monday, September 15, 2025, deploying its Compressed Natural Gas (CNG) trucks.
Over the weekend, PulseNets obtained reports confirming that hundreds of Dangote’s trucks were already sighted on Nigerian highways, departing from the Lekki–Epe Expressway corridor in Lagos State.
The $20 billion refinery previously announced that it had invested about N720 billion to import 4,000 CNG trucks. Industry sources told PulseNets that around 1,000 units have so far been delivered and are already in use.
Dangote Group reported that this strategy aims to reduce retail fuel prices and could save the country up to N1.7 trillion annually in fuel distribution costs. On Thursday, the company unveiled a revised fuel price template, setting the ex-depot price at N820 per litre, while retail prices across various states are expected to range between N841 and N851 per litre.
However, PulseNets learnt that the initiative has triggered disruptions and anxiety within Nigeria’s downstream oil sector.
Stakeholders Divided Over Dangote’s Move
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which has been at loggerheads with Dangote Refinery over what it alleges are anti-labour practices, described the move as “a polished bait that masks deeper threats to labour rights.”
Similarly, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) warned that Dangote’s free fuel delivery offer was misleading, telling PulseNets that “the so-called zero delivery cost is not sustainable and could destabilise existing market structures.”
In contrast, the Independent Petroleum Marketers Association of Nigeria (IPMAN) voiced its approval. IPMAN leaders spoke to PulseNets, urging their members to quickly register with Dangote Refinery, calling the scheme “a welcome intervention that could stabilise prices and benefit the ordinary Nigerian consumer.”
Rising Safety Concerns Amid Truck Accidents
This large-scale rollout coincides with an increase in road incidents involving Dangote trucks. PulseNets learnt that Nigerians are still mourning Ruth Otabor, sister of Big Brother Naija Season 7 winner Phyna, who tragically died after being struck by a Dangote truck in Auchi.
Over the weekend, several passengers sustained injuries when a Dangote truck collided with a Benue Links bus on the Lagos–Kogi expressway, further heightening public concern over road safety.
Expert Warns Against Market Dominance
Professor Wumi Iledare, Emeritus of Petroleum Economics, told PulseNets that Dangote’s push into CNG trucking is an ambitious and potentially transformative step but warned against unchecked dominance.
He explained,
“Dangote’s shift to CNG trucks is undeniably bold and could slash costs, lower emissions, and expand Nigeria’s gas utilisation. Vertical integration itself is not alarming—it is standard practice globally.”
He added,
“The real danger lies in dominance without regulatory oversight. With Dangote already controlling refining, its dominance in transport could choke competition. Without a strong regulator, monopoly fears are not just hypothetical—they are imminent.”
Also Read: NUPENG Suspends Nationwide Strike After Deal With Dangote Refinery
Professor Iledare further cautioned on safety, telling PulseNets,
“Nigerians are still grieving Ruth, Phyna’s sister, and every fresh accident deepens that wound. We must also anticipate severe traffic congestion stretching from Lekki–Epe to major highways nationwide.”
Finally, he stressed a balanced approach:
“The solution is straightforward. Encourage innovation, but reinforce regulation, enforce rigorous safety standards, and ensure a competitive marketplace. Only then will the convenience of this scheme outweigh its potential disruptions.”
