The Dangote Refinery has announced plans to commence nationwide distribution of premium motor spirit (PMS) and automotive gas oil (diesel) from August 15, 2025, signaling a major disruption in Nigeria's downstream oil market.

In a statement released on Sunday, Africa's largest refinery revealed it has invested in 4,000 brand-new compressed natural gas (CNG)-powered tankers to facilitate the distribution. The company has also established CNG stations to be supported by 100 fleets of trucks.

This development comes barely a week after Aliko Dangote, president of Dangote Refinery, predicted a major shakeup in the country's oil downstream sector.

Market Implications

The move by Dangote Refinery is expected to have far-reaching implications for Nigeria's oil downstream industry. Members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), the Nigerian Association of Road Transport Owners (NARTO), the Independent Petroleum Marketers Association of Nigeria (IPMAN), and other downstream stakeholders may face significant business challenges.

A stakeholder in the downstream sector, speaking on condition of anonymity, confirmed that the impact would be widespread: "Not only NARTO. Everyone in the Downstream [will be affected]."

Industry analysts suggest that existing players may need to retool their business models or risk being pushed out of the market as Dangote Refinery gains more market dominance in the country's oil downstream industry.

Timing Amid Industry Tensions

The announcement comes at a time when NARTO and petrol tanker drivers have threatened to halt operations over plans by the Lagos State Government to impose fees of up to N12,500 per truck for the E-Call Up system, particularly on the Lekki-Epe Corridor.

This development may further complicate the landscape for traditional fuel transporters as they now face both regulatory challenges and competition from Dangote's modern fleet of CNG-powered tankers.

For Nigerian consumers, the entry of Dangote Refinery into the distribution chain could potentially impact fuel availability and pricing structures in the coming months.

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