DANGOTE Petroleum Refinery said it would begin a nationwide targeted distribution of premium motor spirit (PMS) and diesel to marketers, petrol dealers, manufacturers, telecoms firms, aviation, and other large users across the country.

The firm has also initiated a credit facility support to woo deep-pocket buyers and sustain its market dominance with a new logistics support strategy for easier movement of PMS and diesel products.

The company announced its plan in a statement on Sunday, June 15, stating that the move, designed to transform Nigeria’s petrol distribution landscape, would take effect from August 15.

It said the initiative comes with free logistics to boost the distribution network, hinting that it had procured 4,000 brand-new compressed natural gas (CNG)-powered tankers to ensure smooth take-off of the scheme.

“This phase of the programme will continue over an extended timeframe,” it stated.

The 650,000 capacity-built refinery also hinted at investing in CNG stations, commonly referred to as daughter booster stations, supported by a fleet of over 100 CNG tankers across the country to ensure seamless product distribution.

“This strategic programme is part of our broader commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability and supporting Nigeria’s economic development.

“It affirms our dedication to improving the availability and affordability of fuel, in support of broader efforts to strengthen the economy and improve the well-being of all Nigerians,” Dangote Refinery stated.

It noted that under the initiative, all petrol stations purchasing PMS and diesel from the Dangote Refinery would benefit from its enhanced logistics support.

“Key sectors such as manufacturing, telecommunications, and others will also gain from this transformative initiative, as reduced fuel costs will contribute to lower production costs, reduced inflation, and foster economic growth.

“Players in these key sectors and others can purchase directly from the Dangote Petroleum Refinery,” it said.

According to the refinery, it will offer a credit facility to those purchasing a minimum of 500,000 litres, allowing them to obtain an additional 500,000 litres on credit for two weeks, under a bank guarantee.

“This pioneering effort marks a major milestone in our vision to revolutionise Nigeria’s energy sector.

“Dangote Refinery is dedicated to ensuring that no place is left behind. Our goal is to provide equitable access to affordable fuel for all Nigerians, regardless of location, making energy more accessible and sustainable for everyone, wherever they may be,” it assured.

The initiative is also expected to revitalise previously inactive petrol stations, thereby driving job creation, stimulating small and medium-sized enterprises (SMEs), increasing government revenue, improving fuel access in rural and underserved communities, and strengthening investor confidence in Nigeria’s downstream petroleum sector.

“This initiative is in line with the Renewed Hope Agenda of His Excellency, President Bola Ahmed Tinubu, reflecting our shared commitment to economic progress, stability, and inclusive development,” the refinery stated.

It further noted, with thanks to the federal government, that the naira-for-crude scheme has helped stabilise fuel supply amid global price volatility.

It also stated that it marked a major revolution in the midstream and downstream sectors and stands as a key example of Tinubu’s economic policies.

“We invite marketers, petrol dealers, manufacturers, telecom companies, and all key stakeholders to embrace this landmark initiative.  The registration process, including Know Your Customer (KYC) verification, will take place from 16 June to 15 August, spanning a total of 60 days,” it added.

The ICIR reports that the Dangote refinery’s list of retail outlet partners includes MRS, AP (Ardova), Heyden, Optima Energy, Techno Oil, and Hyde.

The oil firm, since the commencement of petrol products refining in January 2024, has established its market dominance in the downstream sector, frequently moderating its ex-depot price and compelling its retail outlets partners to adjust the pump prices of its refined products.

Its most recent pump price reduction to its partners’ retail outlets nationwide saw the pump price of petrol fixed at N875 per litre in Lagos and N885 in other southwest states.

It fixed it at N895 per litre in the northwest and north-central, and at N905 per litre in the north-east, south-south and south-east states, The ICIR reported.