Esther Salifu
Dangote Petroleum Refinery has unveiled an ambitious plan to oversee nationwide distribution of petrol, diesel, and other products offering free logistics support to marketers.
The move is anticipated to lower inflation and create thousands of jobs across Nigeria.
Reducing Fuel Costs and Inflation
By removing costly logistics middlemen, Dangote aims to directly reduce pump prices.
Dr. Abimbola Oyarinu ,university lecturer, explains “If it leads to cheaper petrol at the pump, it will ease inflation, considering fuel costs and exchange rates are key inflationary drivers in Nigeria.”
The initiative is set to boost rural fuel availability.
Ibukun Phillips,energy analyst, described the move as “revolutionary,” noting “Logistics currently account for between 10 % and 30 % of fuel prices. Eliminating this cost will naturally reduce pump prices.”
The plan includes launching 4,000 Compressed Natural Gas (CNG) tankers, generating work for at least 8,000 drivers.
Kelvin Emmanuel,energy expert, adds that Dangote’s handling of logistics is “a critical shift that could allow Nigerians to finally benefit from domestic refining”, he stated .
