Dangote Petroleum Refinery could not begin its planned fuel distribution with Compressed Natural Gas-powered trucks last Friday due to logistics challenges in China. The $20bn Lekki-based refinery had earlier announced it would roll out direct fuel distribution using 4,000 trucks ordered from China, but only 450 have so far arrived in Lagos. Another 150 are expected next week, bringing the total to 600.
A senior Dangote Group executive confirmed that the delay stemmed from a shortage of ships to transport the trucks from China to Nigeria. According to the official, 200 trucks arrived in the first shipment, another 250 came in the second batch, and a further 150 are due next week. The shortage of vessels prevented the trucks from reaching Nigeria before the scheduled August 15 kick-off.
With just about 11 percent of the trucks on the ground, the refinery’s plan to commence direct supply to customers this month may face adjustments. The company has, however, stated that it expects 60 shiploads of the trucks to arrive in the next six weeks.
In June, Dangote announced a N720bn investment to deploy the 4,000 CNG-powered trucks nationwide. The initiative, projected to save Nigerians over N1.7tn annually in fuel distribution costs, is also expected to absorb more than N1.07tn in logistics expenses each year. By reducing fuel distribution costs, the refinery aims to ease inflation, support businesses, and stimulate economic growth.
The program is designed to revive dormant filling stations and create more than 15,000 jobs in the logistics chain, while curbing cross-border smuggling and promoting cleaner, more efficient distribution.
When the plan was first announced, tanker drivers and members of the Natural Oil and Gas Suppliers Association of Nigeria raised concerns that they might lose their livelihoods. The association warned that bypassing existing distribution channels could disrupt supply and urged the refinery to reconsider.
Dangote has since met with the associations to address their concerns. Both sides agreed to work together, with the refinery assuring that it would sell fuel to bulk buyers rather than directly to end users. NOGASA confirmed the understanding, saying the fear of job losses had been laid to rest and appreciating Dangote for maintaining the supply chain.
source: punchng.com
African Energy Council