Nigeria’s Dangote Refinery is bringing in 4,000 natural gas-powered trucks to distribute refined products directly within the local market, the company announced.
In June, the refinery revealed it would start supplying fuel straight to retail stations, manufacturers, telecom companies, and other major users in August, a move expected to improve supply but also put it head-to-head with local fuel traders.
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The acquisition is part of the logistics push for its massive 650,000 barrels-per-day refinery, the largest in Africa.
The trucks, representing a 720 billion naira ($469.89 million) investment, are scheduled to begin operations on August 15.
Anthony Chiejina, head of branding and communication at Dangote Industries Limited, said the decision would help cut logistics costs and deliver products directly to marketers, according to Reuters.
Nigeria, Africa’s top oil exporter, is increasingly turning to gas as an alternative fuel after removing a long-standing but expensive petrol subsidy that led to sharp increases in pump prices.
However, gas adoption has been slow. ($1 = 1,532.2800 naira)
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Image Credit: Channels TV
