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4,000 CNG Trucks: Tanker Drivers Panic as Dangote, Marketers Tighten Distribution Deal

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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.

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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.

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Energy

OPEC+ Retains Output at 30.9mbpd

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Nigeria’s crude oil production averaged 1.238m bpd in June – OPEC

In a confirmation of expectations that more policy adjustments will not occur until 2027, OPEC+ oil-producing countries have voted to keep December production targets steady.

The OPEC+ alliance, yesterday, agreed in principle to keep its combined December oil output targets unchanged at 30.9 million barrels per day (bpd), with Saudi Arabia’s individual target held at 10.5 million bpd.

The resolution was passed at a virtual meeting attended by seven core OPEC+ members- Saudi Arabia, Russia, Iraq, Kuwait, Algeria, Kazakhstan and Oman.

This is as the group continues to struggle with export disruptions from the Middle East crisis, while Gulf members have been boosting exports that have been disrupted for months by the conflict, most are still pumping well below their targets.

OPEC+ comprises the Organisation of the Petroleum Exporting Countries (OPEC) and allies including Russia. Only the seven members — plus the United Arab Emirates (UAE) until it quit OPEC in May — have been involved in monthly output decisions in recent years.

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All members of the 21-country group are due to meet on November 29, when it will decide 2027 quotas.

“Today’s decision was the easy one,” said Jorge Leon, an analyst at Rystad. “The much more important test comes at the November 29 ministerial meeting, when OPEC+ will decide its 2027 production framework.”

Oil prices jumped more than two per cent on Friday, with Brent crude settling at almost $118 a barrel, the highest since April, as traders braced for a potential escalation in the Iran war after the US midterm elections.

“OPEC+ faces an extremely difficult call for 2027,” Leon added. “The group has to plan around huge uncertainty over the US-Iran war, the pace of recovery through the Strait of Hormuz, and the size of the surplus that could emerge once disrupted barrels return.”

The seven members have been boosting output targets for much of 2026 and in September completed the phased rollback of a 1.65 million-barrel-per-day supply cut first agreed in 2023. At earlier meetings, they kept the targets steady for October and November.

OPEC+ still has one more layer ⁠of production cuts of about two million bpd covering most members through the end of 2026.

The group needs to complete a review of members’ production capacity during the fourth quarter before setting the 2027 baselines that will determine future quotas ⁠and shape plans to unwind those cuts, sources have said.

The Iran war has disrupted projects to expand capacity across the Middle East, throwing estimates of future production potential into uncertainty, Reuters reported in October. As a result, the review is now expected to be completed by mid-November.

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Energy

U.S. to Tweak LNG Safety Rules for Foreign Markets

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With a view to accelerating infrastructure development and reducing operating costs, the U.S. Department of Transportation is contemplating a new set of safety regulations for liquefied natural gas facilities.

This is coming as American exporters prepare for another major expansion in global natural gas markets.

It was gathered that the proposal, issued by the Pipeline and Hazardous Materials Safety Administration (PHMSA), would modernize federal LNG safety requirements by incorporating standards developed by the National Fire Protection Association.

READ ALSO: Investors Embrace DPRP IPO Globally, 120 Countries, 54 African Nations

The changes are to address facility location, engineering, construction, operations, and maintenance, with greater flexibility to adopt newer technologies.

Transportation Secretary, Sean Duffy estimates that the updated framework could save LNG operators approximately $100 million annually while maintaining safety protections. The projected savings are an agency estimate, and the proposal has not yet become a final regulation.

The initiative comes as the United States strengthens its position as the world’s largest LNG exporter. American export capacity is expected to increase by approximately 100 million metric tons annually by the end of the decade, supported by projects already under development and additional planned investments.

Global LNG demand has also become more sensitive to geopolitical disruptions. Interruptions to Middle Eastern gas shipments associated with the conflict involving Iran have encouraged international buyers to evaluate alternative suppliers and diversify long-term procurement arrangements.

U.S. LNG developers have responded with additional investment commitments. Projects representing more than 50 million metric tons of annual capacity have reached final investment decisions since the beginning of 2025.

Major exporters, including Cheniere Energy and Venture Global, are pursuing additional development opportunities as federal policy places greater emphasis on expanding domestic energy infrastructure.

However, regulatory modernization does not eliminate the financial or operational challenges associated with LNG construction.

Developers must still secure the Federal Energy Regulatory Commission (FERC) approvals, complete environmental reviews, arrange financing, and address potential legal challenges. Pipeline connections, specialized equipment availability, construction costs, and long-term customer contracts also influence project schedules.

Delfin LNG, which is developing a floating export facility, illustrates the importance of infrastructure safety approvals. Its associated pipeline has not received publicly confirmed PHMSA clearance to resume operations following an explosion earlier this year.

Separately, FERC has proposed a streamlined authorization framework for certain modifications and expansions at existing LNG facilities, including activities that could qualify for automatic approval or shortened review periods.

For energy investors, the combined regulatory initiatives could improve development visibility and reduce some costs, although their financial impact will depend on final requirements and individual project circumstances.

Additional LNG export capacity could support demand for U.S. natural gas production, particularly from major producing regions connected to Gulf Coast terminals.

Midstream operators, engineering companies, compression equipment manufacturers, and construction contractors could also benefit from continued infrastructure investment.

At the same time, greater export demand may increase domestic natural gas price sensitivity to international markets, creating different implications for producers, utilities, and industrial consumers.

Investors will be monitoring the final PHMSA regulations, FERC permitting developments, LNG project financing decisions, and the pace at which proposed export capacity enters commercial service.

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Energy

NALPGAM Preaches Innovation, Safety to LPG Operators

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GAS: New Temile/Hyundai LPG Vessel to bring down high cost of cooking gas in Nigeria-NCDMB

The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) has urged operators in Nigeria’s liquefied petroleum gas (LPG) industry to strengthen safety standards, improve regulatory compliance and adopt digital technologies to reduce operational losses and drive business growth.

The association said improved operational practices would help protect investments, enhance efficiency, build consumer confidence and support the sustainable expansion of C.

The call followed its 2026 webinar, themed “Downstream LPG Operational Excellence and Compliance,” which brought together industry operators, regulators and other stakeholders to discuss safety risks, market volatility, operational inefficiencies and regulatory requirements in the downstream LPG sector.

Speaking at the event, NALPGAM National President, Edu Inyang, said the industry’s long-term growth would depend on more than increased consumption and supply volumes, stressing the need to embed safety and operational efficiency in everyday business practices.

“The future of Nigeria’s LPG industry cannot be achieved by increasing volumes alone. We must grow safely, responsibly, efficiently and sustainably. Safety is not an occasional campaign; it must become a continuous industry culture,” he said.

READ ALSO: Tinubu Promises to Boost Local Production with NNPC Refineries

A major outcome of the webinar was a proposal for a NALPGAM Standard of Operational Excellence, anchored on four principles: safe and well-maintained facilities, competent and adequately trained operators, regulatory-compliant processes, and consumer protection.

Participants urged operators to integrate safety into routine operations, strengthen preventive maintenance and comply with licensing and incident-reporting requirements.

They also called for an end to unsafe practices, including unauthorised propane blending and illegal decanting, warning that such activities could expose businesses and consumers to avoidable risks.

Inyang said compliance should be viewed as a means of strengthening business performance rather than merely fulfilling regulatory obligations.

“Compliance is not merely a regulatory burden; it is a business advantage. Well-managed LPG operations reduce accidents, improve efficiency, protect investments and strengthen public confidence in our industry,” he said.

The webinar also highlighted the role of digital technologies in improving operational efficiency and accountability across the LPG value chain.

Participants identified smart filling systems, automated tank gauges, load cells, flow meters and vehicle-tracking systems as practical tools for monitoring product movements, reducing losses and improving inventory management.

Wider adoption of these technologies, they said, could help operators strengthen operational controls, minimise discrepancies and improve the reliability of LPG distribution.

The discussions come as Nigeria seeks to expand LPG consumption to approximately five million tonnes annually by 2030, a target that will require increased investment, stronger distribution networks and wider consumer access.

Stakeholders called for greater industry participation in the Decade of Gas LPG penetration programme, alongside stronger collaboration to expand access, improve cylinder traceability and promote certified local manufacturing.

The NALPGAM also urged regulators and programme coordinators to involve its members more actively in implementing LPG penetration and cylinder recirculation initiatives.

According to the association, its members’ nationwide presence and proximity to consumers could help improve the reach and effectiveness of programmes designed to increase LPG adoption.

Reiterating the association’s position, Inyang said the industry must establish clear operational standards that protect consumers while supporting efficient and sustainable business practices.

“Our aspiration is clear: every LPG facility must be safe and properly maintained, every operator competent and adequately trained, every process compliant, and every customer protected. This is the standard of operational excellence we must collectively pursue,” he said.

The NALPGAM reaffirmed its commitment to working with government agencies, regulators and industry stakeholders to develop a safer, more efficient and competitive LPG market.

The association maintained that embedding safety, strengthening compliance and deploying appropriate technologies would be critical to improving operational performance and supporting the long-term growth of Nigeria’s LPG industry.

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