Dangote Refinery’s Direct Fuel Distribution Could Cut Inflation, Boost Jobs, and Lower Prices

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The Dangote Petroleum Refinery’s new initiative to distribute Premium Motor Spirit (PMS) and diesel directly to marketers, manufacturers, telecom firms, and other large-scale users may help reduce inflation, create jobs, and lower fuel prices across Nigeria.

As part of the plan, the refinery has introduced free logistics support to improve nationwide petroleum distribution. Experts say the deployment of 4,000 brand-new Compressed Natural Gas (CNG)-powered tankers could also break the monopoly of middlemen and promote a cleaner environment.

Professor Lucky Adedayo, a public affairs analyst, noted that if well executed, the policy could disrupt the dominance of intermediaries in the oil supply chain. He pointed out that tanker drivers and other middlemen have previously held the industry hostage, but Dangote’s direct distribution model could change that.

However, he stressed that Nigerians will ultimately judge the policy based on its effect on fuel prices and inflation. “If it reduces pump prices, it will also help curb inflation, given that fuel costs and exchange rates are major inflation drivers,” he said.

Another analyst, Deinde Olugbenga, called the move a “revolution” that could transform Nigeria’s energy sector and improve access to fuel nationwide. He explained that logistics typically make up 10-30% of fuel costs, so eliminating this burden should lead to lower prices.

“This initiative will particularly benefit rural communities, where fuel is often more expensive despite lower incomes. It could revive abandoned filling stations in these areas and create widespread economic benefits,” he added.

Additionally, the project is expected to generate employment, with Dangote Refinery set to recruit around 8,000 drivers to support the new distribution network.

About The Author

Dele Fashomi

Dele Fashomi, seasoned journalist and communication teacher, is a holder of Master of Arts degree in Communication and Language Arts from the University of Ibadan in 1992/93.

Earlier, he had bagged a Bachelor degree from the same university in 1984, after which he proceeded to the Nigerian Institute of Journalism, Lagos, in 1990, for a postgraduate diploma in Journalism.

He had done many courses in communication, including the EU-BBC Editing Course in 2002.

Mr. Fashomi combines effectively the practice, research and teaching of communication. And to date, he has published two academic works in communication: Issues in Communication Technology and Policy (2010) and Economic and Social Issues in Advertising and PR (2013).

He had his first break in the Nigerian media in Concord Newspapers in 1990 and today, he has over two and half decades experience earned in several newspapers.

He has been part of many start-ups, such as The Republic (1987), The Comet (1999), The Anchor 2001 – 2002; Sun Newspapers (2003); Westerner newsmagazine (2005 – 2010) as Editor; National Life (2011) as Sunday Editor, and Newswatch Newspapers (2012- 2016) as Daily Editor.

Dele Fashomi is now the Publisher/Editor-in-Chief of Newstide247.com newspaper online, which he started in July 2015. He is also into biography writing, with many books in his trail, some of which he wrote alone and one he co- authored with his mentor, Mr Dare Babarinsa, entitled: Olabiyi Durojaiye – DARE TO BE DiFFERENT. He also guided and collaborated with Pa Olatunji Odusanya in writing his autobiography – AGAINST ALL ODDS. There are many other books in the works under his pen.

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