Dangote Refinery Announces Major Fuel Price Reduction with New CNG Logistics Initiative

In a significant move aimed at reducing fuel costs and inflation, the Dangote Petroleum Refinery has announced a new logistics-free distribution program powered by compressed natural gas (CNG). The initiative, which begins on Monday, September 15th, will see a substantial decrease in the pump price of fuel across multiple regions.

As part of the program, the refinery’s gantry price will be reduced to ₦820 per litre. This reduction will be passed on to consumers, with retail prices set at ₦841 per litre in Lagos and other South-Western states, and ₦851 per litre in Abuja, Rivers, Delta, Edo, and Kwara states.

The first phase of the rollout will cover the Federal Capital Territory, Lagos, Kwara, Delta, Edo, Rivers, and South West states, with plans for nationwide expansion as the company’s fleet of CNG-powered trucks grows.

This strategic shift to a CNG-based distribution network is projected to generate annual savings of over ₦1.8 trillion for the Nigerian economy. The primary goals are to slash distribution expenses, lower fuel prices at the pump, and alleviate nationwide inflationary pressures.

The initiative is expected to provide considerable benefits to over 42 million Micro, Small, and Medium Enterprises (MSMEs) by reducing their energy overhead and improving profit margins.

The Dangote Group is investing over ₦720 billion into the project, which is also anticipated to reactivate dormant filling stations and create a significant number of new jobs. These employment opportunities will include roles for truck drivers, station managers, and fuel attendants.

The company has extended an invitation to key stakeholders, including fuel station operators, telecommunications firms, and large-scale fuel consumers, to partner in the initiative to ensure its success and maximize its positive economic impact.