Fuel: Ɗangote Refinery bypasses marketers, begins direct supply to major consumers

Dangote Refinery bypasses

Ɗangote Refinery has announced a major shift in its fuel distribution strategy, revealing that it will begin supplying premium motor spirit (PMS) and automotive gas oil (diesel) directly to large-scale consumers such as manufacturers, telecommunications companies, the aviation sector, and other heavy users.

Dangote Refinery bypasses2

The 650,000 barrels-per-day facility shared the update via a statement posted on its official X account on Sunday, noting that the new supply initiative will commence on August 15, 2025.

This move marks a departure from the traditional reliance on fuel marketers, as the refinery takes full control of its distribution process. As part of this new approach, Ɗangote Refinery will eliminate middlemen and provide free logistics to its bulk buyers, aiming to streamline supply and reduce costs.

“Ɗangote 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, we will begin direct distribution of PMS and diesel to marketers, petrol dealers, manufacturers, telecom firms, aviation, and other large users nationwide, with free logistics to strengthen the supply network,” the statement read.

To facilitate this large-scale distribution, the refinery has acquired 4,000 brand-new compressed natural gas (CNG)-powered tankers. Additionally, it is developing a network of CNG stations – commonly known as daughter booster stations – backed by a fleet of over 100 CNG tankers to ensure efficient and eco-friendly delivery.

“This strategic program underscores our commitment to eliminating logistics costs, enhancing energy efficiency, and promoting sustainability. It is part of our broader mission to support Nigeria’s economic growth by improving the accessibility and affordability of fuel”, the company stated.

Under this initiative, all fuel stations and industrial players purchasing PMS and diesel directly from the refinery will benefit from streamlined logistics and cost savings. The refinery believes this will have a ripple effect, reducing production costs, easing inflationary pressures, and contributing to overall economic development.

The statement concluded by encouraging key sectors to take advantage of the opportunity to buy directly from the Ɗangote Petroleum Refinery for more efficient operations and long-term economic benefits.

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