Dangote Petroleum Refinery and Petrochemicals has expanded its free petroleum product delivery programme to Kano, Imo, Anambra and Nasarawa States, in a move aimed at reducing distribution costs for independent petroleum marketers and potentially lowering petrol pump prices.
The latest expansion brings the initiative beyond its initial coverage of Lagos, Ogun, Rivers, Kaduna, Abuja and Delta States.
The programme is designed to bring refined petroleum products closer to marketers and retailers, while eliminating part of the transportation costs associated with moving fuel from the Dangote refinery to distant markets.
By absorbing delivery expenses, the refinery says it is removing a significant cost from the downstream supply chain, creating the possibility for the savings to be passed on to businesses and ultimately consumers.
Fatima Aliko Dangote, Group Executive Director of Commercial Operations, Oil & Gas, WAEP and Fertiliser, said the broader objective was to ensure that Nigerians feel the benefits of domestic refining across the country.
She said reducing delivery expenses would make fuel distribution more efficient, eliminate avoidable costs and create greater room for competitive petrol prices.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the expansion, saying it could ease some of the financial and logistical pressures confronting independent petroleum marketers.
IPMAN National Publicity Secretary, Chinedu Ukadike, said marketers often have significant amounts of money tied up while waiting for petroleum products to be loaded and transported to their destinations.
According to him, the free delivery arrangement could improve marketers’ cash flow, reduce delays and enable them to deploy their funds more efficiently.
Ukadike also said motorists could eventually benefit through lower pump prices, noting that transportation expenses are among the costs that influence the final price of petrol.
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He explained that delivering petroleum products closer to their destination markets would reduce the logistical burden on marketers.
The initiative could be particularly significant for businesses supplying communities located far from the Dangote refinery, where long-distance transportation involves expenses such as haulage, vehicle maintenance, insurance, driver costs and road-related risks.
Reducing those expenses could improve the economics of supplying distant markets and give marketers greater flexibility to compete on pump prices.
IPMAN subsequently urged Dangote Refinery to expand the free delivery programme to more locations, particularly across northern Nigeria.
The association described the initiative as an example of how competition and deregulation could produce practical benefits for participants in Nigeria’s downstream petroleum sector.
With a refining capacity of 700,000 barrels per day, Dangote Refinery has continued to expand its role in supplying refined petroleum products to the Nigerian market.
The expansion of the free delivery programme represents another effort to reduce the cost of distributing domestically refined products, with motorists and households potentially benefiting if the resulting savings are reflected in retail pump prices.
