Dangote’s CNG-powered Trucks Make First Fuel Deliveries To Lagos Stations

Dangote Petroleum Refinery & Petrochemicals has commenced delivering petrol to petroleum marketers across Lagos with its compressed natural gas (CNG)- powered trucks.

LEADERSHIP can confirm the development by observing the marked truck discharging content at the Conoil filling station opposite the Ikeja General Hospital.

The initiative aims to transform Nigeria’s fuel distribution landscape by reducing logistics costs and enhancing customer supply efficiency.

The fleet of fuel tankers imported through Apapa Port represents a significant capital investment estimated at N720 billion. This expenditure underscores the company’s commitment to pioneering innovative solutions as its largest single-train refinery expands its operational capabilities.

Our reporter’s visit to fuel stations in the Ikeja area of Lagos observed the new trucks actively discharging fuel to major stations like Conoil and MRS.

A driver from one of the CNG-powered vehicles stated, “We’ve started discharging fuel with the truck. If you go further down the road, you’ll see another truck at the Conoil station also discharging.”

At the Conoil station near LASUTH, a small queue of motorists was seen waiting for the delivery to be completed.

One of the motorists in the queue, Adebayo Kunle, expressed his frustration with the wait time. “I’ve been here since past 11 a.m., and it’s now past 1 p.m., and I’m yet to get fuel,” he said, attributing the delay to the ongoing delivery process and the time needed for station staff to complete their calculations.

Recall that the Dangote Petroleum Refinery had positioned about 1,000 CNG-powered trucks to kick-start nationwide distribution of petroleum products to marketers.

Though the refinery demonstrated its capability for phased commencement of the exercise, our correspondent can confirm that marketers have started receiving products free as earlier proposed by the refinery management.

On Monday September 22, our correspondent who monitored the situation sighted one of the trucks discharging product at Conoil outlet opposite Lagos State general hospital.

About 1,000 of the trucks are confirmed to be on the ground with another 200 being discharged at the seaport in Lagos.

By the end of October, the initial 4,000 trucks would be in the country.

Areas to benefit in the first phase of the exercise is Abuja, Lagos, Kwara, Delta and Edo states.

This is happening as the refinery revealed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) requested it to increase the price of petrol and diesel by N75 per litre, in order to allow its members to match the refinery’s gantry prices at their respective depots.

If implemented, this would result in the pump price of Premium Motor Spirit (PMS) and diesel rising to as high as N950 and N1,090 per litre respectively in some parts of Nigeria.

The refinery disclosed that although it offers petroleum products to marketers at its gantry price, DAPPMAN insists on taking delivery via coastal logistics, an option that would add N75 per litre in extra costs. Based on daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of N1.505 trillion (N1,505,625,000,000), which they effectively asked the refinery to absorb and pass on to Nigerians.

“We wish to clarify that we have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion, a practice that historically defrauded the federal Government for many years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative,” it said.

The refinery alleged its refusal to comply with DAPPMAN’s subsidy request is the core reason behind recent public criticisms and attacks. It reiterated that the refinery has sufficient capacity to meet domestic demand and support exports as it consistently maintains a monthly closing stock of 500 million litres of refined products in its tanks.

“Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping, which is detrimental to the Nigerian economy and the well-being of its citizens,” it said.

Reaffirming its commitment to supporting the reform agenda of President Bola Ahmed Tinubu, the refinery stated that through various strategic interventions, it has helped stabilise the Naira, cushion the effects of fuel subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and create employment opportunities across multiple sectors.

“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary.

“Dangote Petroleum Refinery remains firmly committed to the progress and wellbeing of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” it noted.

The Refinery also reaffirmed its position regarding its recent statement on the DAPPMAN, which was published on Monday, 15 September, in several national dailies and reputable online platforms.

The refinery stressed that any party aggrieved by the content of the publication is free to seek redress through appropriate legal channels. It noted that it would not be swayed by threats or so-called seven-day ultimatums and is fully prepared to defend its position through all legitimate means.