Dangote Petroleum Refinery has expanded its free petroleum products delivery programme to Kano, Imo, Anambra and Nasarawa states, a move expected to reduce distribution costs for independent marketers and create room for more competitive fuel prices.
The four states join Lagos, Ogun, Rivers, Kaduna, Delta and the Federal Capital Territory, bringing the programme’s coverage to 10 locations.
The refinery said the initiative was designed to bring petroleum products closer to marketers and retailers while reducing the cost of transporting fuel over long distances.
Fatima Aliko-Dangote, Group Executive Director for Commercial Operations, Oil and Gas, WAEP and Fertiliser at Dangote Industries, said the company was absorbing delivery costs to reduce pressure on businesses across the distribution chain.
She said the initiative was intended to ensure that the benefits of domestic refining extended beyond the refinery itself and created room for savings to reach consumers.
The expansion has been welcomed by the Independent Petroleum Marketers Association of Nigeria, which said the arrangement could ease some of the financial and logistical pressures faced by independent marketers.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, said marketers often commit significant funds to buying products and can face delays and additional costs before their orders are transported to their destinations. Reducing the cost and time involved in moving fuel could improve marketers’ cash flow and allow them to deploy capital more efficiently, he said.
The programme does not automatically guarantee lower pump prices. However, by removing part of the distribution cost, the arrangement could give marketers more room to compete on retail prices.
The expansion comes as Nigeria’s downstream petroleum market continues to adjust to increased domestic refining capacity and greater competition in fuel supply.
Dangote’s next challenge will be extending the delivery network while ensuring that the reduction in logistics costs is reflected across the wider distribution chain.
