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Dangote Refinery Eases Concerns Over New Fuel Distribution Plan

Lagos, Nigeria – Nigeria’s Dangote Petroleum Refinery has reassured local fuel distributors and tanker drivers that it will not bypass existing supply chains, following widespread fears that the company’s new distribution plan would lead to job losses and a market collapse.

The refinery, which is set to begin its direct fuel distribution scheme, had announced it would deploy 4,000 Compressed Natural Gas-powered trucks. This move prompted strong warnings from the Natural Oil and Gas Suppliers Association of Nigeria (NOGASA), which said the plan would cause nationwide disruption and scarcity.

However, leaders of NOGASA and the National Association of Road Transport Owners (NARTO) have confirmed they have met with Dangote officials. According to NOGASA’s national publicity secretary, Chinedu Ukadike, the company has agreed to sell products to bulk buyers, who are members of his association, rather than directly to end-users. He stated that this collaboration would protect existing jobs and investments.

A Dangote official, Devakumar Edwin, confirmed that the new CNG-powered fleet is intended to improve logistical efficiency and reduce costs, not to displace existing players. He added that the use of more environmentally friendly trucks would help to ensure that the benefits of local refining are passed on to consumers.

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