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Presidency applauds Dangote Refinery’s fuel distribution plan, says it’s major boost to CNG initiative

The Presidency has indeed applauded Dangote Refinery's fuel distribution plan, highlighting its potential to boost Nigeria's economy and support the country's Compressed Natural Gas (CNG) initiative. Dangote Refinery's plan to distribute fuel directly to gas stations nationwide starting August 15, 2025, is expected to reduce logistics costs, improve fuel availability, and lower prices.

By Rhalialt Arhuoizah 

*Key Highlights of the Plan:*

- *Free Fuel Distribution Logistics*: Dangote Refinery will absorb over N1.07 trillion annually in logistics costs to enable free nationwide delivery of petrol and diesel to marketers and major consumers.
- *CNG-Powered Tankers*: The refinery has invested N720 billion in acquiring 4,000 CNG-powered trucks and developing CNG "mother and daughter" refueling stations across Nigeria.
- *Credit Facility*: Bulk buyers of at least 500,000 liters will qualify for an additional 500,000 liters on credit for two weeks, backed by a bank guarantee.
- *Job Creation*: The initiative is expected to create over 15,000 direct jobs and stimulate small and medium-sized enterprises .

*Economic Benefits:*

- *Reduced Inflation*: By cutting logistics costs and fuel prices, the initiative aims to curb inflation and stimulate economic growth.
- *Increased Energy Efficiency*: The adoption of CNG-powered tankers and refueling stations promotes cleaner energy use and reduces dependence on diesel-powered logistics.
- *Boost to SMEs*: Revitalizing inactive petrol stations and improving fuel access in rural areas could stimulate small and medium-sized enterprises.