The Dangote Petroleum Refinery and Petrochemicals is set to begin its much-anticipated direct distribution of Premium Motor Spirit (PMS), commonly known as petrol, on Monday, September 15, 2025. This landmark initiative is accompanied by a new, reduced gantry price of N820 per litre, with corresponding price adjustments for consumers in various regions of Nigeria. The company's goal is to streamline the supply chain, enhance efficiency, and reduce the overall cost of fuel distribution.
The first phase of this free direct delivery scheme will initially cater to 11 states, including the Federal Capital Territory (FCT), Lagos, Kwara, Delta, Rivers, and Edo. In a recent statement, the Dangote Group announced that the retail pump price would be N841 per litre in Lagos and other states in the South-Western region. For states like Abuja, Delta, Rivers, Edo, and Kwara, the pump price is set at N851 per litre.
The free delivery aspect of the initiative is designed to reduce logistics costs, which are a major component of fuel prices in the country. The company's fleet of 4,000 Compressed Natural Gas (CNG)-powered trucks, acquired at an investment of over N720 billion, is central to this distribution network.
This development follows a prior delay from the originally planned August launch date, which was attributed to logistical challenges in China regarding the delivery of the CNG trucks. The direct supply model is a significant shift in the downstream petroleum sector, positioning the refinery not only as a major producer but also as a key distributor of petroleum products.
The Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) has voiced concerns about the new distribution model, describing it as a "Greek gift" that could lead to a monopoly and result in job losses. The union has also been in a recent dispute with the company over the right of its new truck drivers to unionise. The Dangote Group, however, has maintained that the initiative is aimed at fostering efficiency and creating new employment opportunities.