Dangote’s petrol distribution with 4,000 CNG trucks to save Nigerians N1.7trn annually

Dangote Petroleum Refinery has revealed that its N720 billion investment in its landmark nationwide petroleum products distribution initiative will save Nigerians over N1.7 trillion annually.

This disclosure is contained in a statement issued by the Dangote Group, where it provided an update on the refinery’s investment in 4,000 Compressed Natural Gas (CNG) powered trucks for the scheme.

Dangote refinery, in its statement, pointed out that the energy firm will absorb over N1.07 trillion annually in fuel distribution costs.

It stated that this initiative, which eliminates transportation costs for fuel marketers and large-scale consumers, is expected to help reduce pump prices and inflation.

The refinery stated that the initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability.

The statement reads, ‘’Dangote Petroleum Refinery has invested over N720 billion to implement its landmark initiative of deploying 4,000 Compressed Natural Gas (CNG)-powered trucks for the nationwide distribution of petroleum products, which is expected to save Nigerians over N1.7 trillion annually.

‘’This bold step will see the privately-owned refinery absorb over N1.07 trillion annually in fuel distribution costs. The initiative is also poised to significantly benefit over 42 million Micro, Small and Medium Enterprises (MSMEs) by reducing energy costs and enhancing profitability.

‘’The initiative, which eliminates transportation costs for fuel marketers and large-scale consumers, is expected to help reduce pump prices and inflation. From 15 August, Dangote will begin the direct delivery of petrol and diesel to filling stations, industrial facilities, and other high-volume consumers.’’

According to a statement from the refinery, it aims to meet Nigeria’s daily consumption of 65 million litres of refined petroleum products. This includes 45 million litres of Premium Motor Spirit (PMS), 15 million litres of diesel, and 5 million litres of aviation fuel.

With the average logistics cost estimated at N45 per litre, the refinery will cover over N1.07 trillion annually in free distribution expenses.