Fuel price cut: Dangote Refinery petrol distribution will reduce Nigeria’s inflation – Rewane
The Chief Executive Officer of Financial Derivatives Company, Bismarck Rewane, said that Dangote Refinery’s petrol distribution initiative, billed to kick off on August 15, 2025, would help in curbing Nigeria’s headline inflation, which stood at 22.97 percent as of May.
Rewane made this known in a statement on Monday, citing an FDC report published in the Lagos Business School (LBS) Executive Breakfast Presentation for July 2025.
According to Rewane, Dangote Refinery’s plan to spend over N1.7 trillion annually on logistics costs to distribute fuel is a game changer in the country’s oil and gas downstream sector.
He noted that Dangote Refinery’s move to use compressed natural gas trucks to distribute fuel and automotive gas oil nationwide to the doorsteps of end-users will lower prices and curb inflation.
“The initiative is set to revolutionise Nigeria’s oil downstream business by cutting logistics costs and by spending over N1.7 trillion annually,” it stated, emphasising that Dangote Refinery’s fuel distribution strategy, which involves deploying 4,000 compressed natural gas (CNG) trucks nationwide, will lower pump prices, curb inflation, and support over 42 million MSMEs (micro, small, and medium enterprises).
“With 4,000 CNG-powered trucks delivering refined products directly to the doorsteps of end-users, the move will lower pump prices, curb inflation, and support over 42 million MSMEs.”
DAILY POST reports that Dangote Refinery announced a plan to commence direct petrol and diesel distribution to end-users.
However, petroleum products marketers and retailers have kicked against the move, noting it would lead to massive job losses.
DAILY POST reports that fuel prices dropped in the last six days following the drop in global crude oil prices and the ex-depot price slash to N840 per litre from N880 by Dangote Refinery.
At the weekend, the Nigerian National Petroleum Company Limited retail outlets in Abuja also adjusted petrol pumps to N910 from N945 per litre.
Fuel price cut: Dangote Refinery petrol distribution will reduce Nigeria’s inflation – Rewane
