The Dangote Petroleum Refinery has announced the commencement of free transportation of Premium Motor Spirit (PMS), diesel, and aviation fuel to marketers, petrol dealers, manufacturers, and other bulk consumers across Nigeria.
The initiative, which will be executed using 4,000 newly procured Compressed Natural Gas (CNG)-powered tankers, aims to eliminate the cost of logistics for fuel delivery — a development experts believe will reduce pump prices, curtail inflation, and generate thousands of jobs.
The company said the rollout will also benefit sectors such as aviation, telecommunications, and industrial manufacturing, as well as ensure steady product availability even in remote and underserved areas.
Economic and energy analysts have hailed the initiative as a strategic move that could disrupt entrenched supply chain monopolies and usher in a new era of affordable and accessible fuel for Nigerians.
Speaking on the implications, Dr Abimbola Oyarinu, a university lecturer and public affairs analyst, noted that if properly implemented, the policy would weaken the influence of powerful intermediaries who have long dominated the fuel distribution chain.
“This is a bold step. It will break the monopoly of powerful middlemen, including tanker drivers, who have in the past held the country to ransom — even the NNPC,” he said.
He, however, cautioned that Nigerians would ultimately assess the success of the policy based on its tangible effect on retail prices and inflation.
“Citizens want to see results at the pump. If this leads to lower fuel prices, it will directly impact inflation positively, since fuel prices and the exchange rate are two major drivers of inflation in Nigeria,” he added.
In her own assessment, energy policy consultant Ibukun Phillips described the initiative as a “revolution” in Nigeria’s petroleum logistics.
“Logistics cost typically makes up between 10 to 30 percent of the final price of fuel. By absorbing this cost, the Dangote Refinery is setting the stage for a significant reduction in pump prices,” she explained.
She added that rural and low-income communities, who often pay higher rates for fuel due to poor infrastructure and limited supply, stand to benefit significantly.
“This move could revive thousands of dormant filling stations across rural Nigeria. Many Nigerians don’t realize that rural dwellers often pay more for petrol than city residents, despite earning far less,” she said.
Phillips also revealed that the refinery plans to employ at least 8,000 drivers for the CNG-powered fleet, creating fresh employment opportunities and contributing to the country’s green energy transition.
Industry observers say the development could pressure other players in the downstream sector to improve efficiency and reduce costs, as Dangote’s direct-to-market approach potentially reshapes Nigeria’s fuel distribution architecture.
The Dangote Petroleum Refinery, Africa’s largest, commenced operations earlier this year and has steadily ramped up production capacity.
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