Dangote Petroleum Refinery has announced a major distribution scheme aimed at reducing fuel prices, tackling inflation, and creating jobs across Nigeria.
The company revealed plans to deploy 4,000 new Compressed Natural Gas (CNG)-powered tankers to deliver petrol, diesel, and other refined products directly to filling stations, manufacturers, telecoms firms, aviation operators, and other large users—cutting off traditional intermediaries in the supply chain.
The move has triggered mixed reactions, with some marketers expressing fear over job losses, but energy experts are hailing the decision as a potential game-changer for the downstream oil sector.
A university lecturer, Dr. Abimbola Oyarinu, said the direct distribution model could weaken the grip of powerful middlemen who have historically disrupted fuel supply and influenced prices.
“This initiative has the potential to dismantle the dominance of middlemen who have held the sector hostage for years,” he said. “If pump prices drop as expected, it will help tame inflation.”
Energy analyst Ibukun Phillips described the logistics move as “revolutionary,” noting that transportation accounts for 10 to 30 percent of pump prices. She said rural communities, often hit hardest by fuel price hikes, would benefit the most.
“Reviving abandoned filling stations and improving access in remote areas will be a major win. Hiring 8,000 drivers to run the system will also reduce unemployment,” she added.
Co-founder of Dairy Hills, Kelvin Emmanuel, said Dangote’s offer to cover transport, storage, and bridging costs addresses long-standing gaps in the system.
He argued that fears of monopoly are unfounded, adding that the real problem has always been logistical and regulatory failures.
“Fuel supply has remained inconsistent across Nigeria. Only Lagos, Abuja, and parts of the southwest enjoy stable prices. Dangote is taking bold steps to fix a broken system,” he said.
The company said its new plan is designed not just to reduce costs but also to support environmental sustainability and energy access nationwide.
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