Dangote refinery cuts ₦1.07 trillion fuel costs with direct supply

The Dangote Petroleum Refinery has unveiled ambitious plans to directly supply petroleum products to marketers across Nigeria, a strategic shift that will see the company absorb over ₦1.07 trillion annually in fuel distribution costs.

This major announcement, made in a statement released on Sunday, marks a significant step towards reshaping the nation’s energy landscape.

To power this expansive initiative, the refinery has already invested over ₦720 billion in acquiring 4,000 Compressed Natural Gas (CNG)-powered trucks and building a comprehensive nationwide CNG distribution infrastructure.

This substantial investment is projected to translate into massive savings for Nigerians, eliminating transportation charges typically passed on to consumers and potentially saving the country more than ₦1.7 trillion yearly.

“This bold step will benefit over 42 million Micro, Small and Medium Enterprises by reducing energy costs and boosting profitability,” the company affirmed, highlighting the broad economic impact expected from the move.

Starting August 15, the Dangote Refinery will commence direct deliveries of petrol, diesel, and aviation fuel to filling stations, industrial facilities, and large-volume consumers nationwide.

This direct supply model is designed to efficiently meet Nigeria’s daily consumption of 65 million litres of refined products, which includes 45 million litres of petrol, 15 million litres of diesel, and 5 million litres of aviation fuel.

With current logistics costs estimated at ₦45 per litre, Dangote’s direct distribution is anticipated to help ease fuel prices, contribute to a reduction in inflation, and even breathe new life into dormant filling stations across the country.

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Beyond the economic advantages, the plan also aims to curb fuel smuggling and foster a more efficient and environmentally friendly supply system.

The initiative isn’t just about fuel; it’s also a significant job creator.

The company projects that over 15,000 direct jobs will be generated across the vast logistics chain.

These roles will span from truck drivers to station managers and CNG station attendants, providing considerable employment opportunities.

According to the Dangote Group, this initiative is a crucial part of its broader efforts to tackle existing logistics bottlenecks, enhance overall energy efficiency, and actively support Nigeria’s economic growth through a sustainable and streamlined fuel distribution system.