• Dangote will begin selling gasoline and diesel directly to customers, bypassing middlemen

• The group is launching its own logistics fleet and CNG fueling stations nationwide

• A credit system for bulk buyers aims to win loyalty and ease cash flow pressures

Starting August 15, Dangote Group will begin selling gasoline and diesel directly to gas stations, factories, transport operators, and telecom companies across Nigeria. This move marks a major shift in the country’s fuel market. Instead of going through the traditional middlemen, Dangote is building a fully controlled distribution system, from refinery to the final customer.

The goal is to have full control over pricing and efficiency while answering public doubts about whether the new refinery is helping bring down pump prices.

To manage deliveries internally, Dangote is deploying a massive logistics fleet. About 4,000 brand-new trucks powered by compressed natural gas (CNG) will hit the road across Nigeria. These trucks will reduce reliance on third-party transporters, who often charge high fees and slow down delivery.

Using CNG instead of diesel also cuts operating costs and supports Nigeria’s energy transition efforts. The company wants to prove that a local producer can offer competitive prices by trimming waste along the supply chain.

To keep the fleet running, Dangote will build more than 100 fueling stations for CNG. These stations will give the company full independence and ensure that fuel keeps flowing smoothly. By controlling transportation and supply, Dangote aims to eliminate several hidden costs that have made its locally refined fuel less competitive.

For context, the price of CNG in Nigeria stands at $0.14 per liter, while gasoline sells for $0.55 per liter. This difference plays a big role in overall cost savings.

To make the deal even more attractive for large buyers, Dangote is offering a credit system. Buyers who purchase at least 500,000 liters can receive an equal amount on credit, valid for two weeks, backed by a bank guarantee. This approach is designed to build loyalty with key clients and reduce pressure on their cash flow.

One of the main criticisms of Dangote’s refinery has been its failure to significantly lower fuel prices in Nigeria. The company now argues that middlemen and logistics bottlenecks were partly to blame. By cutting those out, Dangote wants to show that it can meet both economic and social expectations.

However, this aggressive move is rattling traditional fuel distributors. Billy Gillis Harry, head of PETROAN, the Nigerian group representing retail station owners, said Dangote is trying to wipe them out overnight.

By locking down refining, transport, and sales, Dangote is setting new rules for the industry. Many had feared such dominance, and now it is happening. The future will depend on how regulators balance fair competition with the need to support Nigeria’s growing industrial base.

As the market changes, all eyes will be on whether Dangote’s bold strategy brings lower prices and better service, or simply replaces one monopoly with another.