Dangote Refinery has announced the free nationwide distribution of refined petroleum products, marking a significant milestone in Nigeria’s energy sector.
The refinery says it is ploughing back massive benefits to all citizens, with an estimated economic impact of £1.07 trillion from additional annual logistics costs borne by Dangote Petroleum Refinery. This is complemented by £1.7 trillion in grossing annual savings to Nigerians. The project also involves a £720 billion capital expenditure, including the addition of 4,000 CNG trucks, mother and daughter stations, and more. Furthermore, the initiative is set to create 65 million litres of daily consumption products, including PMS, Diesel, and JET A1.
According to the refinery, before the launch, Nigerians faced perennial fuel scarcity, adulterated fuel, pricing differentials, bridging costs, and an inflation rate of 33%. Thanks to the refinery’s efforts, these issues are being addressed with promises of no more fuel scarcity, a consistent supply of high-quality petroleum products, uniform pricing, reduced pump prices, and the elimination of bridging costs. Inflation is also expected to drop to 23%, contributing to a GDP growth of 3.4%. The initiative will render the Petroleum Equalisation Fund (PEF) redundant, resuscitate all dormant fuel stations, and control cross-border smuggling of petroleum products. It will establish an efficient distribution network, promote cleaner energy, and reduce energy costs by eliminating transport expenses. Additionally, the project will drive massive job creation and provide credit facilities to marketers, significantly boosting employment and daily living standards.
The Refinery further indicates that it’s petroleum and diesel products are refined for better engine performance and are environmentally friendly.
