Dangote Petroleum Refinery has unveiled plans to distribute fuel directly to marketers nationwide, absorbing over N1.07 trillion annually in distribution costs.
The company has committed N720 billion to deploy 4,000 Compressed Natural Gas-powered trucks, a move projected to save Nigerians more than N1.7 trillion each year.
This was disclosed in a statement by the company on Sunday.
“This bold step will see the privately-owned refinery absorb over N1.07tn annually in fuel distribution costs. The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises by reducing energy costs and enhancing profitability,” the company stated.
The initiative, designed to eliminate transportation costs for fuel marketers and bulk consumers, is expected to ease pump prices and curb inflation.
Starting 15 August, Dangote announced it will commence direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers.
The initiative aims to meet Nigeria’s daily demand of 65 million litres of refined products.
“This includes 45 million litres of Premium Motor Spirit, 15 million litres of diesel, and 5 million litres of aviation fuel.
“With the average logistics cost estimated at N45 per litre, the refinery will cover over N1.07tn annually in free distribution expenses. Dangote Group is investing N720bn 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 company noted.
It added that the programme is part of Dangote’s broader commitment to resolving logistics bottlenecks, improving energy efficiency, advancing environmental sustainability, and driving Nigeria’s economic development. The company emphasized that reduced fuel distribution costs would lower production expenses, ease inflationary pressures, and boost economic growth.
“The initiative is also expected to resuscitate dormant filling stations, fostering job creation in the process. 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 added.
The refinery also noted that the programme would help curb cross-border smuggling of petroleum products while promoting a more efficient and environmentally friendly distribution system.
