Dangote sets date for nationwide fuel distribution

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Dangote Petroleum Refinery has unveiled plans to commence nationwide distribution of Premium Motor Spirit (PMS) and diesel from August 15, 2025.

A statement from the Refinery on Sunday said the initiative, backed by a massive deployment of 4,000 Compressed Natural Gas (CNG)-powered tankers, aims to slash logistics costs, enhance energy efficiency, and stimulate economic growth across key industries.

By offering free distribution to bulk buyers, the refinery directly addresses one of the major cost pressures for Nigerian businesses reliant on fuel.

The 4,000-strong CNG tanker fleet and accompanying booster stations represent a $500 million private-sector push into cleaner energy logistics, reducing carbon footprints for corporate buyers.

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The initiative also promised a 500,000-litre credit line, with bank guarantee, provides working capital relief for distributors and industrial users.

The statement added that the initiative is expected to provide a 15-20% reduction in energy costs for factories, potentially improving Nigeria’s competitiveness in regional markets.

The program explicitly targets revival of dormant petrol stations, creating franchise opportunities for entrepreneurs. Analysts project this could activate 2,000+ idle stations nationwide, generating 50,000+ indirect jobs.

Dangote Industries’ CFO noted: “This is a working capital optimization model – we’re monetizing our refining capacity while structurally lowering costs for the productive economy.”

DAILY COMMERCE projects that this vertical integration move positions Dangote Refinery as both supplier and logistics provider, capturing margins across the value chain. The credit offering suggests sophisticated treasury management capabilities, potentially setting new industry standards for business to business fuel commerce in emerging markets.

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