Bismarck Rewane, the Chief Executive Officer of Financial Derivatives Company, stated that Dangote Refinery's plan to start distributing petrol on August 15, 2025, is expected to assist in reducing Nigeria’s headline inflation. As of May, this rate was at 22.97 percent.
In a statement released on Monday, Rewane revealed this information, referencing an FDC report featured in the July 2025 edition of the Lagos Business School (LBS) Executive Breakfast Presentation.
Rewane believes that Dangote Refinery's strategy to allocate more than N1.7 trillion each year for logistics expenses related to fuel distribution will revolutionize the nation's oil and gas downstream sector.
He pointed out that Dangote Refinery's initiative to employ compressed natural gas trucks for distributing fuel and automotive gas oil across the nation directly to consumers will help reduce prices and control inflation.
"The initiative aims to transform Nigeria's oil downstream sector by reducing logistics expenses and investing more than N1.7 trillion each year," it declared, highlighting that Dangote Refinery’s strategy for distributing fuel—utilizing 4,000 compressed natural gas (CNG) trucks across the country—will decrease pump prices, control inflation, and provide support to over 42 million micro, small, and medium enterprises (MSMEs).
With 4,000 CNG-powered trucks distributing refined products directly to end-users' doorsteps, this initiative will reduce pump prices, help control inflation, and provide support for over 42 million MSMEs.
It has been reported that Dangote Refinery announced plans to begin distributing petrol and diesel directly to end-users.
Nevertheless, marketers and retailers of petroleum products have opposed the initiative, pointing out that it could result in significant job losses.
It has been reported that fuel prices have decreased over the past six days due to a reduction in global crude oil prices and Dangote Refinery lowering its ex-depot price from N880 per litre to N840.
Over the weekend, Nigerian National Petroleum Company Limited retail outlets in Abuja revised petrol prices at their pumps from N945 to N910 per litre.
Post a Comment