…Analysts say the initiative will scale back inflation and create jobs
A latest initiative by the Dangote Petroleum Refinery, which incorporates the distribution of Premium Motor Spirit (PMS) and diesel to entrepreneurs, petrol sellers, producers, telecommunications corporations, the aviation sector, and different large-scale customers throughout the nation, with free logistics help to reinforce the distribution community, has the potential to cut back inflation, create employment alternatives, and decrease the costs of petroleum merchandise.
Specialists stated that the refinery’s resolution to deploy 4,000 brand-new Compressed Pure Fuel (CNG)-powered tankers might additionally dismantle the monopoly held by intermediaries and contribute to a cleaner setting.
Dr Abimbola Oyarinu, a college lecturer and public affairs analyst, acknowledged that if correctly applied, the coverage might considerably weaken the grip of middlemen throughout the oil provide chain. He identified that these intermediaries, together with tanker drivers, have, previously, held the nation to ransom, and the brand new coverage might allow the Dangote Refinery to beat this longstanding problem.
Nonetheless, he emphasised that Nigerians will primarily decide the coverage based mostly on its affect on gasoline costs and its impact on inflation.
“It is going to break the monopoly of highly effective middlemen, together with tanker drivers, who’ve previously even held the NNPCL and others to ransom. Nonetheless, what Nigerians care most about is the way it impacts them. Let’s wait and see its affect on the pump. If it results in a lower in pump costs, it’ll additionally assist scale back inflation since gasoline costs and the alternate price are two main drivers of inflation in Nigeria,” he stated.
One other analyst, Ibukun Phillips, described the transfer as a “revolution” that may reshape Nigeria’s power panorama and redefine power accessibility throughout the nation.
“The advantages are huge. Logistics account for between 10% and 30% of gasoline prices, so eradicating this burden will naturally result in a drop in pump costs. Furthermore, it’ll make sure that rural and underserved communities have higher entry to petroleum merchandise. Many Nigerians are unaware that rural dwellers usually pay extra for gasoline than these in city areas, regardless of incomes considerably much less. This initiative might revive moribund filling stations in these communities and supply wide-reaching advantages,” she defined.
She additionally famous that the challenge will generate employment, with not less than 8,000 drivers anticipated to be recruited by the Dangote Refinery to launch the initiative.
