In a strategic move aimed at redefining Nigeria’s downstream oil and gas landscape, the Dangote Petroleum Refinery has announced the commencement of direct distribution of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) to major industrial consumers across the country.
The 650,000 barrels-per-day refinery disclosed this development via an official statement on its X handle on Sunday, stating that the initiative will commence on August 15, 2025.
The new distribution framework will see the refinery supply fuel directly to manufacturers, telecommunications firms, aviation operators, and other large-scale users—effectively bypassing traditional petroleum product marketers.
According to the statement, the initiative is designed to eliminate middlemen, reduce logistics costs, and improve nationwide fuel access.
“Dangote Petroleum Refinery is pleased to announce the commencement of a significant national initiative designed to transform Nigeria’s fuel distribution landscape. Effective August 15, 2025, the refinery will begin direct distribution of PMS and diesel to marketers, petrol dealers, manufacturers, telecom operators, aviation players, and other major consumers—at no additional logistics cost,” the statement read.
To ensure efficient implementation, the refinery has procured 4,000 brand-new compressed natural gas (CNG)-powered tankers. Additionally, it is investing in a network of daughter booster stations and has deployed over 100 CNG-powered delivery vehicles nationwide to support seamless fuel distribution.
“This strategic program underscores our broader commitment to eliminating inefficiencies in fuel logistics, promoting cleaner energy alternatives, and supporting national economic development,” the company said.
The refinery also disclosed plans to extend a credit facility to high-volume buyers. Under the scheme, customers purchasing a minimum of 500,000 liters will be eligible for an additional 500,000 liters on a two-week credit basis, backed by a bank guarantee.
Key sectors are expected to benefit from reduced fuel prices, translating into lower production costs, improved inflationary trends, and stimulated economic activities. The initiative is also expected to revive dormant petrol stations, create employment, and expand access to fuel in underserved communities.
“This initiative reflects our commitment to inclusive energy access and economic empowerment. It aligns with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, and affirms our shared vision for sustainable growth, job creation, and national progress.”
Dangote Refinery further acknowledged the Federal Government’s support—particularly the Naira-for-Crude exchange framework—which it said has stabilized domestic fuel supply amid global price volatility.
Prior to this shift, licensed fuel marketers such as MRS, Optima, AP Ardova, and others handled product liftings from the refinery to final consumers.
The announcement comes just days after the Group President, Aliko Dangote, signaled imminent disruptions in the country’s downstream sector, describing the move as a game-changer for energy supply, national productivity, and economic sovereignty.
