Dangote Refinery Releases 10 Benefits of Free Distribution of Petrol

• Dangote Petroleum Refinery has announced plans to provide free delivery of fuel and diesel across Nigeria
• Experts have described the move as a potential game changer in the downstream sector, though it has sparked concerns among marketers
• The refinery has also provided insights into the benefits of its free distribution plans for the public and the sector

Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Dangote Petroleum Refinery has revealed plans to offer free petroleum products delivery across Nigeria

The refinery has invested in the procurement of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers for the initiative

In a statement released on X, the refinery said it is also investing in Compressed Natural Gas (CNG) stations commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers nationwide to ensure seamless product distribution.

It explained:

"Under this initiative, all petrol stations purchasing PMS and diesel from the Dangote Petroleum Refinery will benefit from this enhanced logistics support.

"Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth. Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery."

Dangote lists 10 benefits of its free petrol distribution plan

The company listed 10 key benefits of its new logistics model, which includes a credit facility for bulk buyers supported by bank guarantees.

The refinery stated that the listed benefits of the free distribution plan include:

1. Free delivery of fuel across Nigeria.
2. Credit facilities for bulk buyers, supported by bank guarantees.
3. Elimination of logistics and transportation costs.
4. Lower fuel prices at the point of sale.
5. Improved accessibility to fuel in both urban and rural communities.
6. Enhanced environmental sustainability through optimised delivery systems.
7. Support for local economies and small businesses.
8. Strengthened long-term energy security and national efficiency.
9. Increased government revenue.
10. The ability to purchase high-quality vehicles and equipment, enabled by the refinery's production of Euro V and Euro VI standard fuels.

PETROAN kicks against Dangote refinery plan

The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) have expressed strong concerns over the decision by Dangote Refinery to venture into the direct distribution of fuel across the country.

The oil marketers warns that the move could cripple businesses and lead to massive job losses in Nigeria’s petroleum value chain.

In a chat with Legit.ng, Dr. Billy Gillis Harry PETROAN, President, noted that the refinery’s plan to adopt a forward integration model where the producer also becomes a distributor poses a threat of creating a monopoly in the downstream oil sector.

PENGASSAN says petrol should be N700 per litre

Earlier, Legit.ng reported that the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) has called on marketers, including the Dangote refinery, to reduce the retail price of petrol.

Festus Osifo, the association's president, made the call while speaking to journalists, stating that petrol should ideally be priced between N700 and N750 per litre, not the current price of N870 to N910.

Source: Legit.ng