Energy
4,000 CNG Trucks: Tanker Drivers Panic as Dangote, Marketers Tighten Distribution Deal
With less than 30 days to the commencement of the highly anticipated rollout of 4,000 Compressed Natural Gas trucks by the Dangote Refinery and Petrochemical Limited, industry stakeholders have signalled an alignment with the refinery’s plan to begin direct fuel distribution to marketers and critical sectors of the economy from August 15.
According to Sunday PUNCH checks revealed that as of Friday, no fewer than 25 marketers had signed up with the Dangote refinery for the direct fuel distribution deal.
The figure rose from an initial three, signalling increasing alignment between the indigenous refinery and oil marketers, it adds.
However, the development is fuelling concerns among tanker drivers, who fear massive job loss when Dangote begins direct supply of Premium Motor Spirit to the oil marketers.
ALSO READ: Obi’s Birthday Echoes Loud in Sokoto as ‘Obidients’ Shower Patients with Gifts
The refinery had last month announced its intention to supply PMS and diesel directly to petroleum marketers, retail dealers, manufacturers, as well as major players in the telecommunications and aviation industries, a move seen as a major disruption to Nigeria’s traditional fuel supply chain.
25 Strategic Partners
In what appears to be growing market confidence in the refinery’s logistics scheme, the number of strategic partners collaborating with Dangote for the fuel distribution initiative has now surged from three to 25, officials have confirmed.
A senior executive at Dangote Group, was cited by Sunday PUNCH revealed that marketers were registering ahead of the August launch, with the refinery preparing to move products nationwide using its fleet of 4,000 trucks.
“Yes, more marketers are now registering with us ahead of the planned free distribution of petroleum products using 4,000 trucks. Right now, the number of strategic partners has grown to 25. We started with three partners but now, it has jumped to 25 partners,” the Dangote official said.
The refinery had said the move is part of an effort to fill the gap created by Nigeria’s dependence on imports and to ensure the availability of refined products across the country.
Stakeholders say the free distribution scheme may significantly impact pump prices and ease logistics challenges, especially in northern Nigeria.
However, the refinery’s growing influence in the downstream sector has sparked debates around market dominance, regulation, and the long-term impact on local competition.
Marketers Left with no Choice
Giving the latest market reaction to the development, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, admitted that marketers were left with little choice but to align with Dangote.
“Well, we don’t have any option. Dangote has become the only supplier of petroleum products in Nigeria and West Africa. I don’t know if they have conquered other markets but I am talking authoritatively on information at my desk as the IPMAN spokesperson.
“We don’t have any other alternative and we are ready to partner. Most of us are ready to collaborate with Dangote. Marketers have applied to benefit from the free distribution scheme,” Ukadike told Sunday PUNCH.
According to him, the decision is driven by economic realities, especially the high cost of fuel, which has crippled the profitability of retail operations.
“Let me also state that whatever would bring petroleum price low at the dispensing point is the fulcrum of IPMAN members. Once the price is lower, the product will move faster, and there will be a gainful return on investment, but anytime you find that the product is high, contrary is the case.
“Sometimes, we don’t even finish one truck of petroleum product in a month and the running cost is accumulating. It is stagnant and can’t be waived. You can’t say that because you were unable to finish one truck in a month, the salaries of your workers won’t be paid. Nobody listens to that,” he explained.
Ukadike warned, however, that the current state of monopoly is unsustainable in the long term.
“We also charge other refineries to please come up, so that there can be competition, especially government-owned refineries. This will put a balance to the issue of monopoly.
“We simply don’t have any choice. But we won’t starve Nigerians. We are no longer importing, which means the refinery is supplying government too. So, we just have to build more refineries to ensure the price comes down.”
Tanker Drivers Panic
But while many independent marketers are embracing the refinery’s free distribution offer, there is growing panic over possible job losses among tanker drivers.
Sunday PUNCH’s interactions with the leadership of tanker drivers on Saturday revealed increasing concern about their future as more petroleum marketers align with Dangote’s plan to distribute fuel directly to filling stations and bulk consumers.
There are fears that the new arrangement could phase out tanker drivers and render their trucks redundant.
However, some of these drivers may eventually be absorbed into the Dangote workforce, Sunday PUNCH learnt.
As the Dangote refinery currently supplies a significant share of the fuel in circulation, most drivers presently lift products from its gantries. But with the planned deployment of Dangote-owned trucks, many fear that thousands of independent drivers may soon be out of work.
Although other depot owners and marketers still operate their own trucks, it is believed that many may opt for the free delivery option to cut logistics costs.
“Some of the marketers may need to park their trucks to enjoy free delivery,” an analyst noted.
Speaking with our correspondent on Saturday, the National President of the National Association of Road Transport Owners, Yusuf Othman, confirmed that stakeholders were planning to meet over the matter to make their positions known.
He, however, declined to disclose how the scheme would affect his members, saying consultations were ongoing.
“I am not going to say anything about it because we are in discussion,” Othman said.
Asked whether the discussions were with Dangote, he replied, “The discussion is with the stakeholders generally.”
In a similar vein, suppliers of petroleum products have also expressed concerns that if Dangote begins to sell petrol, diesel, and aviation fuel directly to bulk consumers such as filling stations, telecom firms, and industries, they and their drivers could lose their livelihoods.
Consequently, the Natural Oil and Gas Suppliers Association of Nigeria has scheduled a National Executive Council meeting to discuss the implications of Dangote’s distribution plan.
According to a notice issued by the association’s Secretary-General, Tunde David, the meeting, scheduled to hold in Abuja on July 31, followed due consultations with NOGASA’s National President, Benneth Korie.
It partly read, “Following due consultations with the National President, Mr Benneth Korie, DOI; notice is hereby given for the holding of the association’s NEC meeting on Thursday, 31st July, 2025, at Chida Hotel, Jabi, Abuja, by 10 a.m.”
PETROAN Urges Caution
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria has warned against what it described as a “Greek gift” by Dangote.
The National President of PETROAN, Billy-Gillis Harry, drew parallels with past monopolies in Nigeria’s flour, sugar, and cement industries, warning that such distribution schemes may only offer temporary relief before ushering in higher prices.
He said, “I think Nigerians need to be careful about accepting a ‘Greek gift’. We need to be much more insightful, as we have experienced it in different spheres of the economy, whether it is flour, sugar, or cement.
“The methods have never been any different. So, if you go round the country, you would see containers of cement at selling points. But it did not at any time reduce the cost of cement.
“So, there is no anticipation that when everybody is drummed out of the business by these kinds of gifts, we wouldn’t get back to the same position where we would start looking to buy petroleum products for N2,500 per litre. It has happened in other areas. We are courageous enough to stand by our point.”
The 650,000-barrel-per-day refinery came on stream in January 2024, first rolling out diesel and aviation fuel A1.
PMS rollout followed nine months later, in September 2024.
As of February 2025, the refinery disclosed that it had reached 85 per cent of its installed capacity, expressing confidence in the speedy attainment of full capacity.
New crude grade variants, Utapate and Cawthorne, have boosted Nigeria’s crude oil production by 12.16 million barrels.
The crude grades, introduced in 2024 and early 2026, represent the latest additions to the country’s basket of crude oil grades aimed at expanding export streams and strengthening oil revenues.
Data contained in the Nigerian Upstream Petroleum Regulatory Commission’s (NUPRC) monthly crude and condensate production, indicated that the Utapate crude grade produced a total of 8.75 million barrels between January and May 2026, while the newly introduced Cawthorne blend contributed 3.41 million barrels during the same period, bringing the combined output from both crude grades to approximately 12.16 million barrels.
The data also showed that Utapate has yet to achieve its projected output target announced by the government, even as production remained more than 20,000 barrels per day below the 80,000 bpd target set by operators.
The figures showed that Utapate recorded an average daily production of 55,190 barrels in January. Based on the 31-day month, this translated to a total monthly output of 1.71 million barrels.
Output increased to 57,970 barrels per day in February, yielding about 1.62 million barrels, before rising marginally to 58,020 barrels daily in March, equivalent to roughly 1.80 million barrels.
In April, the field attained its highest daily production level of 59,290 barrels, producing an estimated 1.78 million barrels during the month. Production moderated slightly to 59,170 barrels per day in May but still generated approximately 1.83 million barrels due to the longer calendar month.
However, despite the upward trend, the data indicated that Utapate remained significantly below the 80,000 barrels-per-day target. The field fell short by 24,810 barrels daily in January, 22,030 barrels in February, and 21,980 barrels in March.
The production gap narrowed to 20,710 barrels per day in April before widening marginally to 20,830 barrels in May.
The development suggests that although operators have made progress in scaling up production, the ambitious target announced earlier by the Nigerian National Petroleum Company Limited has yet to be realised.
The Utapate field, which commenced production in May 2024, had been projected to achieve 80,000 barrels per day by the end of 2025.
The Utapate crude blend was introduced into the international market by the NNPC Ltd and its partner, Sterling Oil Exploration and Energy Production Company Limited, following the lifting of the maiden cargo of 950,000 barrels destined for Spain.
Produced from Oil Mining Lease 13 in Akwa Ibom State, the crude grade possesses characteristics that have attracted international interest. It has a sulphur content of 0.0655 percent and a relatively low carbon footprint resulting from flare gas elimination.
Meanwhile, another emerging crude stream, Cawthorne, contributed 3.41 million barrels to Nigeria’s production between January and May, according to the NUPRC data.
The figures showed that Cawthorne’s average daily production rose sharply from 12,340 barrels in January to 16,450 barrels in February and 23,970 barrels in March. The field sustained the momentum in April, reaching 30,970 barrels per day before easing slightly to 28,940 barrels daily in May.
The monthly production volumes translated to 382,540 barrels in January, 460,600 barrels in February, 743,070 barrels in March, 929,100 barrels in April and 897,140 barrels in May.
The NNPC Ltd had recently announced the commencement of exports from the Cawthorne blend, describing the development as part of efforts to increase Nigeria’s crude oil production and strengthen the country’s position in the global energy market.
In a statement, the Chief Corporate Communications Officer of NNPC Ltd, Andy Odeh, said the first cargo of the new grade was lifted aboard the MT Eburones vessel for shipment to the Netherlands.
“The Nigerian National Petroleum Company Limited has commenced export of its new crude grade, Cawthorne, marking a significant milestone in the company’s drive to increase Nigeria’s crude oil production and expand its portfolio of globally competitive export streams,” Odeh said.
He added, “Cawthorne blend crude, the latest addition to Nigeria’s basket of crude grades, has an API gravity of 36.4, placing it firmly within the light, sweet category, comparable to Bonny Light, and highly valued in the global market for its superior petrol and diesel yields.”
According to him, the maiden cargo, estimated at 950,000 barrels, was exported through the Cawthorne Floating Storage and Offloading vessel located offshore Bonny, Rivers State.
“The cargo was exported via the Cawthorne Floating Storage and Offloading vessel, which is strategically located offshore Bonny. The facility enhances crude evacuation from OML 18 and strengthens Nigeria’s export reliability, operational efficiency and overall energy security,” Odeh stated.
The emergence of both Utapate and Cawthorne underscores Nigeria’s determination to diversify its crude export portfolio and maximise oil earnings. However, the latest NUPRC figures also highlight the operational challenges facing producers as they strive to convert ambitious output targets into actual barrels.
Combined, Utapate and Cawthorne contributed an estimated 12.16 million barrels of crude oil between January and May, providing additional support to Nigeria’s broader efforts to sustain production growth and improve foreign exchange earnings from the oil sector.
On Thursday, the NUPRC reported that Nigeria’s crude oil production rose above its Organisation of the Petroleum Exporting Countries quota in May 2026, with the country recording its highest crude output in 15 months amid improved operational stability and the absence of major disruptions across key oil facilities.
Data released showed that Nigeria produced an average of 1,530,354 barrels of crude oil per day in May, representing 102 per cent of the country’s 1.5 million barrels-per-day quota approved by OPEC.
When condensate production of 170,446 barrels per day was added, Nigeria’s total oil output climbed to 1,700,800 barrels per day, further strengthening the country’s position as Africa’s largest oil producer and boosting revenue.
OPEC oil output in May hit its lowest in more than two decades, a Reuters survey found, as a U.S. naval blockade cut Iran’s exports and Iran’s effective closure of the Strait of Hormuz slashed exports by other Gulf producers.
Output by the 11-member Organization of the Petroleum Exporting Countries fell by 1.06 million barrels per day month-on-month to 16.13 million bpd, the survey found.
That was the lowest monthly figure since at least 2000, according to Reuters surveys, and well below the levels seen during the COVID-19 pandemic in 2020 when demand collapsed.
The figures exclude the United Arab Emirates which quit OPEC as of May 1.
ALSO READ: Dangote Foundation Distributes Rice to Cement Host Communities in Ogun
Saudi Arabia had a further decline, although Iraq was able to increase supply due to increased domestic use, sources in the survey said.
Venezuela and Nigeria also pumped more.
Eight members of the OPEC+ producer group, which includes OPEC plus allies including Russia, had agreed to raise production in May, but the Iran war and U.S. blockade made that impossible.
The Reuters survey is based on flow data from financial group LSEG, information from other companies that track flows, such as Kpler, and information provided by sources at oil companies, OPEC and consultants.
Credit – Times of India
Shell Nigeria Gas (SNG) shared its experiences in pioneering gas distribution nearly 30 years ago, and identified the expansion of pipeline natural gas infrastructure and the market‑making role of gas distributors as critical in moving gas from a policy aspiration to a practical energy solution for Nigerian industries.
“When SNG started in Agbara–Ota over 20 years ago, demand was nowhere near what it is today,” recalled Managing Director Ralph Gbobo at a panel session on “Building a Bankable Gas Distribution Ecosystem: Infrastructure, Capital and Market Demand” at the 2nd business forum of the Association of Local Distributors of Gas (ALDG) in Abuja late last week.
Represented by Head, Gas Distribution, Chukwuka Amos-Ejesi, Raph said: “The economics was not perfect, but there was a leap of faith anchored on Nigeria’s industrialisation trajectory. That decision has proven right.”
He said SNG’s persistence proved that when demand ambition, supply certainty, enabling infrastructure, and commercial clarity come together, even if not perfectly at the start, it creates industrial clusters that can grow and attract long-term capital. “Sustainability and bankability emerge over time, as utilization deepens and confidence builds,” he pointed out.
ALSO READ: Africa’s Largest Bank Backs Dangote Refinery’s IPO
The theme of the forum was “From Gas Abundance to Gas Access: Reassessing Nigeria’s Gas Distribution Imperatives,” with industry leaders and other stakeholders discussing the use of gas to drive industrialisation. The panel session agreed on the need for “clear, supportive and credible policy frameworks, especially measures designed to improve the use of gas.
Ralph noted: “The introduction of gas-focused policies, notably the Petroleum Industry Act, marked a turning point. By reinforcing the role of gas in Nigeria’s energy and industrial strategy and embedding instruments such as the Network Code- a critical framework that governs the operations of the Domestic Gas market and ensures transparency and stability, and the Domestic Gas Supply Obligation which compels gas producers to allocate gas to the domestic market, the PIA significantly reduced policy ambiguity around gas development.”
He added: “The introduction of clearer pricing frameworks for gas supply and transportation and a more transparent and competitive licensing regime, has also strengthened market confidence. Together, these measures have improved producer confidence, particularly for domestic gas projects, and signaled the government’s strong commitment to gas as a driver of industrial development.”
Incorporated in 1998 as a fully Shell-owned gas distribution company, SNG currently serves over 150 clients in Abia, Bayelsa, Ogun and Rivers states, partnering with governments and other stakeholders to take the cleaner and more affordable energy to the doorsteps of industries. In the first half of this year alone, the company has connected two additional companies in Ogun State to its gas distribution network.
Photo Caption – L–R: Chairman, Association of Local Distributors of Gas (ALDG), and Managing Director, Axxela Gas Distribution, Kehinde Alabi; and Head of Gas Distribution, Shell Nigeria Gas, Chukwuka Amos-Ejesi, receiving a commendation plaque on behalf of SNG Managing Director, Ralph Gbobo, in recognition of his professional and diligent service on the Governing Board of the Association, at the Association of Local Distributors of Gas (ALDG) Business Forum in Abuja
Nigeria’s Crude Output Grows to 12m Barrels on Utapate, Cawthorne
Ekpo Urges Entrepreneurs to Harness Nigeria’s Gas Resources for Economic Growth, General Wellbeing
Terrorists on the Run as Troops Destroy Camp, Rescue Kidnap Victims in Zamfara
Why Nigerians Think I’m Wicked — Patience Ozokwor Finally Reveals the Truth
DSS Foils Arms Smuggling Operation, Arrests Suspect Linked to Zamfara Bandit Leader
NNPC Ltd Uncovers Pipeline Vandals, Disguising as FG Taskforce
Trump’s Family Unveils New Cryptocurrency Platform
Senate Denies Receiving Petitions Against Tinubu’s Ambassadorial Nominees
Dangote Cement Lights Up Benue Host Communities With CSR Initiatives
Reps Recommend 3-year Jail Term For Aviation minister
Tems Sets New Record On Billboard Hot 100 Chart
8xunmv
vpkf21
3xi1wl
Just a smiling visitant here to share the love (:, btw great design.
You have brought up a very great points, thankyou for the post.
You have brought up a very superb points, regards for the post.
Regards for helping out, wonderful information.
You really make it seem really easy along with your presentation but I in finding this matter to be actually something which I think I would by no means understand. It seems too complex and very broad for me. I am taking a look forward to your subsequent post, I¦ll attempt to get the cling of it!
Hey there! I know this is kinda off topic but I was wondering which blog platform are you using for this website? I’m getting sick and tired of WordPress because I’ve had issues with hackers and I’m looking at alternatives for another platform. I would be awesome if you could point me in the direction of a good platform.
Hi! I’ve been following your website for a long time now and finally got the bravery to go ahead and give you a shout out from Dallas Texas! Just wanted to tell you keep up the excellent work!
Great write-up, I am regular visitor of one¦s web site, maintain up the nice operate, and It is going to be a regular visitor for a long time.
Regards for this post, I am a big big fan of this internet site would like to continue updated.