THE DANGOTE Petroleum Refinery has launched a new initiative to distribute petrol (Premium Motor Spirit – PMS), diesel, and aviation fuel to marketers, petrol dealers, manufacturers, telecommunications firms, and other large-scale users nationwide, with free logistics support to enhance distribution.
The refinery’s deployment of 4,000 new Compressed Natural Gas (CNG)-powered tankers is also expected to disrupt the dominance of intermediaries in the supply chain while promoting environmental sustainability.
Dr. Abimbola Oyarinu, a public affairs analyst and university lecturer, noted that the policy could significantly diminish the influence of middlemen in the oil sector.
He highlighted that intermediaries, including tanker drivers, have historically exerted excessive control over supply chains, and this initiative may help mitigate such challenges.
He however stressed that the policy’s success will ultimately be measured by its impact on fuel prices and inflation.
“This move could break the monopoly of powerful middlemen, including tanker drivers, who have previously held even the NNPCL and other stakeholders hostage.
But for Nigerians, the key concern is how it affects them directly. The real test will be its effect on pump prices — if it leads to a reduction, it could also help ease inflation, given that fuel costs and exchange rates are major inflation drivers in Nigeria,” Oyarinu stated.
Another analyst, Ibukun Phillips, described the initiative as transformative, with the potential to reshape Nigeria’s energy sector and improve nationwide access to petroleum products.
“The benefits are substantial. Since logistics account for 10% to 30% of fuel costs, eliminating this expense should naturally lower pump prices.
“Additionally, it will enhance fuel accessibility in rural and underserved areas, where consumers often pay more despite lower incomes. This could also revive dormant filling stations in such regions, creating broader economic benefits,” Phillips explained.
She further noted that the project is expected to generate employment opportunities, with the Dangote Refinery set to recruit at least 8,000 drivers to support the initiative.
