Fuel distribution scheme will create jobs, says Dangote refinery

Fuel distribution scheme will create jobs, says Dangote refinery

The Dangote Petroleum Refinery has said its plan to distribute Premium Motor Spirit (petrol), diesel and other petroleum products to marketers will cut inflation and create jobs.

In a statement on Tuesday, the firm said the distribution of fuel to petrol station operators, manufacturers, telecommunications companies, the aviation sector, and other large-scale users, with free logistics support, was hailed by experts as a move with the potential to reduce inflation, create thousands of jobs, and lower the cost of petroleum products across Nigeria.

This is coming amid fears by some marketers that they might lose their jobs if Dangote started the scheme.

The refinery said its plan to deploy 4,000 new Compressed Natural Gas (CNG)-powered tankers was expected to not only address the country’s long-standing distribution inefficiencies but also reduce the influence of intermediaries and contribute to environmental sustainability.

According to the statement, a university lecturer, Dr Abimbola Oyarinu, stated that if successfully implemented, the policy could significantly reduce the power held by middlemen within the oil and gas distribution chain.

Oyarinu had observed that the intermediaries, including tanker drivers, have historically held the sector, and sometimes even the state, to ransom.

“This initiative has the potential to dismantle the dominance of powerful middlemen, who have in the past stalled progress and held entities like the NNPCL hostage. However, Nigerians will judge it by its impact on fuel prices. If it leads to cheaper petrol at the pump, it will ease inflation, considering fuel costs and exchange rates are key inflationary drivers in Nigeria,” Oyarinu was quoted.