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In a groundbreaking move set to reshape Nigeria’s downstream petroleum industry, Dangote Petroleum Refinery has commenced direct and free shipping of Premium Motor Spirit (PMS) and diesel to retailers across the country, effective today. The initiative, backed by a fleet of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers, aims to eliminate intermediaries, reduce logistics costs, and enhance fuel accessibility nationwide.
The refinery, owned by Africa’s richest man, Aliko Dangote, announced the program as part of a broader strategy to stabilize fuel supply, lower prices, and support President Bola Tinubu’s Renewed Hope Agenda. By bypassing traditional distribution channels, the refinery seeks to disrupt Nigeria’s oil sector, which has long been plagued by inefficiencies, high costs, and reliance on imported refined products.
Dangote Refinery’s distribution program targets petrol stations, independent marketers, manufacturers, telecom firms, aviation companies, and other large-scale fuel consumers. To ensure seamless delivery, the refinery has invested in over 100 CNG booster stations and a robust logistics network designed to reach even remote areas. The free delivery service is expected to reduce operational costs for retailers and contribute to lower pump prices for consumers.
Additionally, the refinery is offering a credit facility to bulk buyers purchasing a minimum of 500,000 liters, allowing them to access an additional 500,000 liters on a two-week credit with a bank guarantee. This incentive aims to ease cash flow pressures and foster loyalty among distributors.
The initiative follows recent price adjustments by Dangote Refinery, with the ex-depot price of petrol reduced from N890 to N825 per liter in February 2025, sparking a ripple effect on retail prices. Partnered stations, including MRS, Ardova, and Heyden Petroleum, are now offering petrol at competitive rates, ranging from N860 to N895 per liter across various regions.
However, the move has sparked concerns among some industry players. The Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) and other marketers have warned that bypassing existing distribution channels could disrupt supply networks and lead to long-term scarcity. Posts on X reflect mixed sentiments, with some accusing Dangote of attempting to monopolize the market, while others view the initiative as a bold step toward energy self-sufficiency.
Dangote’s adoption of CNG-powered tankers aligns with environmental goals, promoting cleaner energy solutions while reducing distribution costs. The refinery’s statement emphasized its commitment to revitalizing dormant petrol stations, creating jobs, and boosting small and medium enterprises (SMEs). The initiative also supports the Federal Government’s Naira-for-Crude policy, which has helped stabilize local fuel supply amid global market volatility.
Industry analysts see the program as a game-changer for Nigeria, which has historically relied on exporting crude oil and importing refined products, leading to sporadic fuel shortages. The Dangote Refinery, with its 650,000 barrel-per-day capacity, has already improved supply since its launch in 2023, and this latest move is expected to further enhance energy security.
Major marketers like NNPC, MRS, Ardova, and Heyden Petroleum, along with the Independent Petroleum Marketers Association of Nigeria (IPMAN), have already partnered with the refinery to secure direct supplies. IPMAN, representing over 30,000 members and 150,000 service stations, confirmed its members’ participation in the program.
While some stakeholders, including Oando and TotalEnergies, have reported revenue declines due to reduced petrol imports, the broader impact is seen as positive for Nigeria’s energy security. The refinery’s efforts are expected to stimulate economic growth, improve fuel access in underserved communities, and potentially curb inflation by lowering energy costs.
As Dangote Refinery rolls out this ambitious program, all eyes are on its ability to deliver on its promise of affordability, efficiency, and sustainability, potentially setting a new standard for Nigeria’s oil and gas sector.
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