Dangote Petroleum Refinery & Petrochemicals has widened its free delivery of petroleum products to Kano, Imo, Anambra and Nasarawa States. The move is expected to cut logistics costs for independent marketers and create room for lower petrol prices at the pump.
The scheme, which earlier covered Lagos, Ogun, Rivers, Kaduna, Abuja and Delta, allows the refinery to bring products closer to marketers and retailers. By absorbing haulage expenses, Dangote is removing a major cost that usually forms part of the price consumers eventually pay.
Fatima Aliko Dangote, Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, said the initiative ensures that the gains of local refining reach beyond the refinery gate.
“The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers.
Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria,” she stated.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has welcomed the expansion. National Publicity Secretary and Public Relations Officer, Chinedu Ukadike, noted that the arrangement eases the financial pressure on marketers who often pay for products and wait days or weeks before loading.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers. This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” Ukadike said.
He added that reduced transport costs and lower risk of moving products over long distances should help keep pump prices from rising further. “The more Dangote brings down its pump price, the more independent marketers will bring down theirs.”
Ukadike urged the refinery to extend the service to more locations, especially in the North, so that more Nigerians can benefit from competitively priced fuel. He described the development as a clear benefit of deregulation and competition in the downstream sector.
With its 650,000-barrel-per-day capacity, the Dangote Refinery continues to supply the domestic market while expanding exports. The free-delivery programme is another step aimed at shortening the supply chain and easing the burden on both marketers and ordinary consumers.
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