The Dangote Petroleum Refinery says its nationwide petroleum products distribution scheme will save Nigerians over N1.7 trillion annually.
On June 15, the refinery said it will begin the nationwide distribution of diesel and premium motor spirit (PMS), also known as petrol, on August 15.
Providing updates in a statement on Sunday, the refinery said Dangote Group has invested over N720 billion in 4,000 compressed natural gas (CNG)-powered trucks for the distribution.
According to the company, the initiative will result in the refinery absorbing over N1.07 trillion annually in fuel distribution costs.
“The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability,” the statement reads.
“The initiative, which eliminates transportation costs for fuel marketers and large-scale consumers, is expected to help reduce pump prices and inflation.
“From 15 August, Dangote will begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers.
“With the average logistics cost estimated at N45 per litre, the refinery will cover over N1.07trn annually in free distribution expenses.
“Dangote Group is investing N720 billion in the acquisition of 4,000 CNG-powered trucks as well as the establishment of nationwide CNG ‘mother and daughter’ stations, among other infrastructure to implement the free distribution initiative.”
The conglomerate added that the scheme aims to meet Nigeria’s daily consumption of 65 million litres of petroleum products, which includes 45 million litres of PMS, 15 million litres of diesel, and 5 million litres of aviation fuel.
“This strategic programme forms part of Dangote’s broader commitment to eliminating logistics bottlenecks, enhancing energy efficiency, promoting environmental sustainability, and supporting Nigeria’s economic development,” the group said.
The company said lower fuel distribution costs will help reduce production costs, ease inflationary pressures, and stimulate economic growth.
The statement added that the distribution plan is expected to resuscitate dormant filling stations, fostering job creation.
“Over 15,000 direct jobs are projected to be created across the logistics chain, including drivers, station managers, and attendants at the CNG stations,” the statement said.
The conglomerate also said the programme would help curb cross-border smuggling of petroleum products and support a more efficient and environmentally friendly distribution system.
