As part of its aim to supply fuel directly to marketers across the country, the Dangote Petroleum Refinery estimates that it will absorb more than N1.07 trillion yearly.
The refinery said that it had spent more than N720 billion to put the plan into action, which would save Nigerians more than N1.7 trillion a year by distributing petroleum products around the country using 4,000 vehicles powered by compressed natural gas.
With this audacious move, the privately held refinery would cover more than N1.07 trillion in fuel distribution expenses yearly. By lowering energy costs and increasing profitability, the program is also expected to greatly help more than 42 million Micro, Small, and Medium-Sized Businesses, the business said in a statement provided to our correspondent on Sunday.
It is anticipated that the program, which seeks to remove transportation expenses for fuel marketers and major users, will also contribute to lower inflation and pump prices.
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Dangote announced that it would start delivering petrol and diesel directly to petrol stations, factories and other large customers on 15 August.
The statement stated that the goal was to supply the 65 million litres of refined petroleum products that Nigeria consumes every day. This comprises 5 million litres of aviation fuel, 15 million litres of diesel, and 45 million litres of Premium Motor Spirit.
“The refinery will cover more than N1.07 trillion in free distribution expenses yearly, with an average logistical cost estimated at N45 per litre. In order to carry out the free distribution program, Dangote Group is spending N720 billion on a number of infrastructure projects, including the purchase of 4,000 CNG-powered trucks and the construction of CNG “mother and daughter” stations around the country, the business stated.
