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Fuel Price Set to Reduce as Dangote Refinery Begins Direct Distribution Nationwide

Fuel Price Set to Reduce as Dangote Refinery Begins Direct Distribution Nationwide

Nigerians are set to enjoy cheaper fuel as the Dangote Petroleum Refinery has officially started direct distribution of petrol across the country. This comes after weeks of anticipation and is expected to bring relief to motorists who have been struggling with high pump prices in recent months.

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The company announced that it will begin supplying filling stations with over 1,000 Compressed Natural Gas (CNG)-powered trucks. These trucks mark the first phase of a larger plan to reach customers directly, cut out middlemen, and make fuel more available in different parts of Nigeria.

Under the new plan, petrol will be sold at ₦820 per litre at the refinery gantry. At filling stations, motorists in Lagos and Southwest states will pay ₦841 per litre, while those in Abuja, Rivers, Delta, Edo, and Kwara will pay ₦851 per litre. This is a major drop compared to the prices Nigerians have been paying in recent months.

Dangote explained that switching to CNG-powered trucks will help reduce transport costs for fuel distribution. According to the company, this move could save the Nigerian economy more than ₦1.8 trillion every year, ease the pressure of inflation, and also bring back to life many filling stations that had been shut down due to high operating costs. Dangote has also set a target of rolling out 10,000 CNG trucks before the end of 2025.

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) has thrown its weight behind the initiative. The association has advised all its members to register with Dangote Refinery in order to benefit from the new supply system. This support is seen as a big step toward making the programme successful nationwide.

However, not everyone is happy with the development. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has expressed fears that Dangote’s direct supply plan could stifle competition in the oil sector. Dangote has strongly denied these claims, insisting that its aim is to reduce costs and make life easier for Nigerians, not to push other marketers out of business.

For ordinary Nigerians, the new distribution system offers hope of lower fuel prices, better availability at filling stations, and less stress on their daily lives. Many are now watching closely to see how this move will affect the wider economy in the coming weeks.