Dangote To Start Free Petrol Distribution in Nigeria, Announces New Pump Price
- Dangote Group has announced that the long-awaited fuel distribution with newly acquired CNG trucks is now set to commence.
- The company said it will begin with Lagos, the South-West, Abuja, Kwara, Delta, Rivers and Edo states
- Filling station owners and other bulk buyers have been invited to apply, as Dangote Group highlighted the many benefits the initiative will bring to the economy
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.
Dangote Refinery has announced that its free fuel distribution scheme will kick off fully on Monday, September 15.
The company said in a statement that it will start with the South-West, the Federal Capital Territory, Kwara, Delta, Rivers and Edo states.
Source: Facebook
Anthony Chiejina, a spokesman for Dangote Group, said the refinery has also cut petrol retail prices to N841 per litre in Lagos and the South-West, and N851 per litre in Abuja, Edo, Kwara, Rivers and Delta.
The company said:
“We are starting the free fuel distribution scheme on Monday. We will start with Lagos and the South-West, Abuja, Kwara, Delta, Rivers and Edo States. There will be a drop in price effective on Monday when the free distribution starts."
Dangote free distribution plan
The programme, initially scheduled for August, was delayed due to logistics challenges in China.
More than 1,000 trucks have now been received to kick-start the scheme, while additional states are expected to benefit as more vehicles arrive.
Dangote Petroleum Refinery said it has invested over N720 billion to deploy 4,000 Compressed Natural Gas (CNG)-powered trucks for nationwide distribution, part of a landmark initiative expected to save Nigerians over N1.7 trillion annually.
The company added it would absorb over N1.07 trillion in annual fuel distribution costs, a move designed to reduce pump prices, ease inflationary pressures, and enhance profitability for over 42 million micro, small and medium enterprises (MSMEs).
The refinery also said it aims to meet Nigeria’s daily consumption of 65 million litres of refined products including 45 million litres of petrol, 15 million litres of diesel, and 5 million litres of aviation fuel.
From Monday, Dangote will directly deliver petroleum products to filling stations, industrial facilities, and other high-volume consumers, eliminating transportation costs for marketers and large-scale buyers.
Source: Getty Images
Presidential endorsement for Dangote plan
Also, the company revealed that it has received support from the government and also industry players.
In a post shared, Dangote said the Presidency described the scheme as a pivotal step in mainstreaming gas-powered transport.
Tosin Coker, commercial coordinator of the Presidential Compressed Natural Gas Initiative (PCNGI), called Dangote’s 4,000-truck roll-out “a milestone achievement” that demonstrates CNG’s practicality in reducing energy costs and emissions.
Also it noted that the Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the move, saying it would significantly ease long-standing logistical burdens.
IPMAN’s publicity secretary, Chinedu Ukadike.was quoted as saying:
“Our pipelines have been non-functional for years, yet nothing has been done to revive them. We’ve had to rely on expensive coastal transport. Dangote’s intervention lifts a huge burden off independent marketers."
NNPC reduce petrol price
Earlier, Legit.ng reported that some retail outlets of the Nigerian National Petroleum Company Limited (NNPCL) has reduced petrol prices of N850 per litre.
The new price for Lagos reflects a N15 reduction from the average price of N865 per litre.
A breakdown of al the filling station prices by states has been provided.
Source: Legit.ng
