Dangote Refinery has announced plans to begin direct distribution of premium motor spirit (PMS) and automotive gas oil (diesel) to manufacturers, telecommunications firms, aviation sector, and other large-scale users, effectively bypassing petroleum marketers.
According to a statement released by Africa's largest refinery on Sunday, this initiative is set to commence on August 15, 2025, and will include free logistics to enhance the distribution network across Nigeria.
Major Investment in Distribution Infrastructure
To ensure smooth implementation, the refinery has invested in 4,000 brand-new compressed natural gas (CNG)-powered tankers. The company is also establishing CNG stations, known as daughter booster stations, supported by over 100 CNG tankers nationwide to facilitate seamless product distribution.
"This strategic program is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria's economic development," the refinery stated.
Benefits for Businesses and Consumers
The initiative aims to benefit all petrol stations purchasing PMS and diesel from Dangote Petroleum Refinery through enhanced logistics support. Key sectors such as manufacturing and telecommunications are expected to gain from reduced fuel costs, which could contribute to lower production costs and reduced inflation.
Additionally, the refinery will offer a credit facility to customers purchasing a minimum of 500,000 liters, allowing them to obtain an additional 500,000 liters on credit for two weeks under bank guarantee.
Economic Impact and Government Support
The initiative is expected to revitalize inactive petrol stations, create jobs, stimulate small and medium-sized enterprises, increase government revenue, and improve fuel access in rural and underserved communities.
Dangote Refinery acknowledged the Federal Government's support through the Naira-for-Crude scheme, which has helped stabilize fuel supply amid global price volatility. The company described the initiative as aligned with President Bola Ahmed Tinubu's Renewed Hope Agenda and his economic reform policies.
Prior to this announcement, filling station partners such as MRS, Optima, AP Ardova, and others had been lifting PMS and diesel from the refinery to end users. Just five days ago, Aliko Dangote, President of Dangote Group, had promised major changes in the country's oil and gas downstream sector.
The 650,000 barrels per day refinery aims to ensure "equitable access to affordable fuel for all Nigerians, regardless of location, making energy more accessible and sustainable for everyone."
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