Dangote Refinery to Begin Free Fuel Distribution and Price Reduction from September 15

The Dangote Petroleum Refinery has announced that its highly anticipated free fuel distribution scheme will officially begin on Monday, September 15, 2025. The initiative will start in Lagos and other South-West states before extending to Abuja, Kwara, Delta, Rivers, and Edo. This marks a major step in what is considered the largest private-sector intervention in Nigeria’s downstream oil sector in decades.

Group spokesperson Anthony Chiejina confirmed the development in a statement to Punch on Thursday, noting that both the free fuel distribution and pump price reduction will commence simultaneously.

“We are starting the free fuel distribution scheme on Monday. We will start with Lagos and the South West, Abuja, Kwara, Delta, Rivers and Edo States. There will be a drop in price effective on Monday when the free distribution starts,” Chiejina announced.

The refinery’s statement emphasized that this initiative was designed not only to provide short-term relief to Nigerians grappling with high fuel costs but also to set the pace for long-term stability in the domestic petroleum market.

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Fuel Distribution Begins with Major Cities and Regions

Under the scheme, petrol will sell at ₦841 per litre in Lagos and the South-West, while Abuja, Kwara, Delta, Rivers, and Edo will have a slightly higher price of ₦851 per litre. This price slash will take effect immediately on the same day the free fuel distribution begins.

The refinery revealed that the program had initially been scheduled for August 2025 but was delayed due to logistics challenges linked to equipment shipments from China. However, with the arrival of more than 1,000 trucks, distribution is now ready to take off, ensuring accessibility across key states.

Industry experts suggest that starting with Lagos and major South-Western states reflects a strategic decision, as these regions hold some of the country’s busiest fuel consumption hubs. Abuja and the Niger Delta states, being politically and economically significant, are also included in the initial rollout.

Dangote Refinery’s Role in Reshaping Fuel Market

The refinery’s move is seen as part of a broader agenda to ease Nigeria’s fuel supply challenges and reduce dependence on imported petroleum products. The price slash, while still relatively high compared to past regulated rates, represents a significant reduction from the ₦900–₦950 per litre range recently witnessed in several Nigerian cities.

For many Nigerians, the announcement comes as a relief amid ongoing economic strain caused by inflation, high transportation costs, and rising living expenses. Analysts predict that the scheme could pressure other marketers to review prices downward in order to remain competitive, thereby creating ripple effects across the energy sector.

The Dangote Refinery, with its massive capacity of 650,000 barrels per day, is expected to play a pivotal role in stabilizing domestic supply. By commencing direct fuel distribution, it eliminates layers of intermediaries that often contribute to artificial scarcity and inflated pricing.

CNG Trucks and Logistics Expansion

In addition to the fuel price cut and free distribution, Dangote disclosed that it had embarked on a 10,000 Compressed Natural Gas (CNG)-powered truck roll-out within 2025. This move aims to reduce logistics costs and strengthen nationwide fuel delivery capacity.

“Even though we recently noticed how the CNG prices doubled a week ago, that will not deter our 10,000 CNG truck roll-out this year,” the company assured.

The deployment of CNG trucks is expected to enhance efficiency and reduce reliance on diesel-powered haulage, which has been a major cost driver in fuel distribution. This decision also aligns with Nigeria’s push towards alternative energy adoption, especially in the transport and logistics sector.

By combining immediate relief through free fuel and long-term investment in infrastructure, the refinery seeks to establish itself as not just a supplier but a stabilizing force in Nigeria’s oil and gas sector.

Public Expectations and Economic Implications

The announcement has already generated excitement among citizens, particularly motorists and transport operators, who stand to benefit the most from reduced pump prices. Commercial drivers in Lagos and Abuja have expressed optimism that transportation fares may decline if the lower fuel prices are sustained.

However, some economic analysts warn that the long-term success of the scheme will depend on consistent supply, government collaboration on infrastructure, and the refinery’s ability to manage distribution logistics across Nigeria’s vast geography.

Still, the symbolic impact of the program cannot be underestimated. By rolling out free fuel alongside a price cut, the refinery is positioning itself as a public-friendly enterprise, addressing widespread concerns about affordability and access.

If the initiative is expanded nationwide as expected, it could usher in a new era in Nigeria’s energy sector, potentially reducing import dependency and stabilizing the local economy.

As the September 15 launch date approaches, all eyes will be on how smoothly the rollout proceeds in Lagos and the other designated regions. For Nigerians weary of high fuel costs and frequent scarcity, this initiative signals hope for a more stable and affordable energy future.

The combination of free fuel distribution, price reduction, and the CNG truck roll-out underscores Dangote’s multi-pronged strategy to transform petroleum logistics and offer tangible relief to consumers. Whether this model will be sustainable in the long run remains to be seen, but for now, it represents one of the boldest moves in Nigeria’s downstream sector in recent years.