The Dangote Petroleum Refinery has revealed plans to begin nationwide distribution of Premium Motor Spirit (PMS) and Automotive Gas Oil (diesel) starting August 15, 2025. This announcement comes amid growing concerns over potential fuel shortages in Lagos and other parts of Nigeria due to ongoing disputes surrounding the Lagos State Government’s E-Call Up system. In a major push to transform Nigeria’s fuel supply chain, the refinery is set to begin delivering PMS and diesel to various regions across the country by mid-August. At the same time, worries over fuel scarcity and a likely surge in pump prices have intensified. This follows the decision by the National Association of Road Transport Owners (NARTO) to halt tanker loading operations at the Dangote Refinery in protest.

According to the company, the upcoming distribution initiative will cater to a broad range of customers, including fuel marketers, petrol station owners, manufacturers, telecom operators, aviation companies, and other major fuel consumers. The goal is to boost the availability and affordability of refined products across the nation.

To facilitate the distribution, Dangote Refinery has rolled out 4,000 brand-new tankers powered by Compressed Natural Gas (CNG). It has also made significant investments in CNG infrastructure, including daughter booster stations and more than 100 CNG-powered trucks to ensure efficient delivery.

Describing the new initiative as a comprehensive strategy to “eliminate logistics costs, enhance energy efficiency, promote sustainability, and support Nigeria’s economic development,” the refinery confirmed it would extend logistics support to all petrol stations that purchase PMS and diesel directly from its facilities.

“Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support,” the company stated.

The company further noted that this move would“revitalise previously inactive petrol stations, thereby driving job creation, stimulating Small and Medium-Sized Enterprises (SMEs), increasing government revenue, improving fuel access in rural and underserved communities, and strengthening investor confidence in Nigeria’s downstream petroleum sector.”

In addition, customers who buy a minimum of 500,000 litres of fuel will be eligible for an extra 500,000 litres on a two-week credit, supported by a bank guarantee, according to reports.

The refinery also emphasized that essential sectors like manufacturing and telecommunications would gain significantly, as lower fuel costs are expected to reduce operating expenses, curb inflation, and enhance productivity.

“Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery,” it noted.

However, operations have hit a snag. Tanker loading activities at the refinery, particularly those affecting the Lekki-Epe corridor, have been disrupted due to a protest over the Lagos State Government’s enforcement of a N12,500 e-call-up charge for trucks.

Both NARTO and the Independent Petroleum Marketers Association of Nigeria (IPMAN) have voiced concerns about the situation. They warned that the added cost from the call-up charges could ultimately burden consumers if not urgently addressed.

Although NARTO maintains that the suspension may not immediately cause widespread fuel shortages, social media users on X (formerly Twitter) have expressed fears that continued delays could cripple fuel supply chains nationwide and drive up prices.

In a memo dated June 14, 2025, NARTO President Yusuf Othman instructed members to halt truck scheduling for loading at Dangote until the dispute is resolved.

He stated that NARTO had recommended a reduced fee of N2,500 per truck in light of the current economic situation. However, no agreement has yet been reached with the Lagos State Government and its private partner, Call-Up Technologies Limited.

Source: The Guardian