By Muhammad Mamman
The Dangote Group is preparing to reduce petrol prices ahead of the official launch of a nationwide fuel distribution programme set for August 15, according to industry sources.
Backed by a ₦720 billion ($450 million) investment, the initiative will see the deployment of 4,000 Compressed Natural Gas (CNG)-powered trucks designed to transport petrol, diesel, and aviation fuel directly to consumers across Nigeria. The project aims to bypass traditional supply chains, cutting out intermediaries in a move expected to ease pressure on fuel prices.
This large-scale logistics intervention is part of the conglomerate’s broader strategy to reshape Nigeria’s downstream oil sector, which has long grappled with high transportation costs, inefficient delivery systems, and supply disruptions. By leveraging cleaner CNG technology and streamlining distribution, Dangote hopes to address systemic challenges that have historically inflated fuel costs at the pump.
“The refinery may adjust its ex-depot petrol prices before August 15 to support the rollout of the distribution network,” a source familiar with the plans told Al Jazeera, suggesting that price relief for consumers could come even before the programme officially launches.
Industry analysts say the initiative could be a game-changer in Nigeria’s energy landscape, especially at a time when citizens are grappling with rising living costs and persistent fuel scarcity in several regions.
The move also aligns with broader efforts by Nigerian policymakers to promote the use of alternative fuels such as CNG, as the country seeks to diversify its energy mix and reduce dependence on expensive, imported petroleum products.
If successful, the Dangote-led project could serve as a model for sustainable energy distribution across Africa’s largest oil-producing nation.
