Dangote Petroleum refiners report that they spend over N1.07 trillion annually on logistics costs for free distribution of refined fuels to filling stations and bulk users across Nigeria.
The company said in a statement released on June 29 that the initiative, which began on August 15, is part of efforts to reduce the financial burden on fuel retailers, reduce oil prices and help curb inflation. Sunday“This bold move will save the privately owned refiner over N1.07 trillion in fuel distribution costs annually.
“The initiative will also bring significant benefits to over 42 million micro, small and medium enterprises by reducing energy costs and improving profitability,” the statement said. ”
To achieve this ambitious plan, the
Group is investing N720 billion in CNG-powered trucks, according to its own figures, while simultaneously setting up a nationwide network of CNG filling stations. Dangote Nigeria’s daily fuel consumption is 65 million litres, comprising 45 million litres of petrol, 15 million litres of diesel and 5 million litres of aviation fuel. The refinery estimates that the logistics costs, which it intends to fully bear, average N45 per litre.
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’s fuel delivery scheme eases burden on distributors – IPMAN Dangote According to the company, the scheme is not only aimed at removing bottlenecks caused by middlemen but also at promoting a more environmentally friendly and efficient fuel distribution system.
“The scheme is also expected to revive defunct filling stations, thereby promoting job creation. ”
“Over 15,000 direct jobs are expected to be created throughout the logistics chain, including drivers, station masters, and CNG station staff,” the statement added.
The company also sees the project as a long-term strategy to support Nigeria’s economic development, noting that lower distribution costs will ultimately reduce production costs for businesses, improve consumer prices, and boost economic growth.
In addition, the refinery said the direct distribution approach will help curb cross-border fuel smuggling and ensure better fuel supply across the country.
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