Dangote Petroleum Refinery and Petrochemicals has extended its free petroleum products delivery initiative to Kano, Imo, Anambra, and Nasarawa states, absorbing transport costs to ease distribution expenses for independent marketers and create room for lower petrol prices at the pump.
The expansion builds on an earlier phase that covered Lagos, Ogun, Rivers, Kaduna, and Delta states, as well as the Federal Capital Territory. By taking on the cost of delivering products directly to marketers and retailers, the refinery is removing one of the most significant expenses in the downstream distribution chain.
Fatima Aliko-Dangote, Group Executive Director for Commercial Operations, Oil & Gas, WAEP and Fertiliser, announced the expansion in a statement on Sunday. She said the initiative was designed to ensure that the benefits of domestic refining translate into real savings for businesses and consumers.
“The value of domestic refining must ultimately be felt beyond the refinery gate,” she said. “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.”
The expansion has been welcomed by the Independent Petroleum Marketers Association of Nigeria (IPMAN), which described the move as a game-changer for independent marketers who have long struggled with logistical and financial challenges.
Chinedu Ukadike, IPMAN’s National Publicity Secretary and Public Relations Officer, said the initiative directly addresses a longstanding problem in the petroleum distribution chain, where marketers often commit substantial funds to product purchases but face extended delays before their orders are loaded and transported.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said. “There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down.”
According to Ukadike, the refinery’s delivery arrangement shortens the period during which marketers’ funds remain tied up, improves cash flow, and allows businesses to deploy capital more efficiently.
“This time around, Dangote has made it very, very easy for marketers,” he said. “Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down.”
Ukadike also highlighted the potential impact on consumer prices, noting that transportation costs are a significant component of the final price paid at the pump. By reducing or eliminating haulage expenses, marketers gain more flexibility to offer competitive retail prices.
“You also have less risk, and you have petroleum products at your doorstep,” he said. “Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs.”
The reduction in distribution costs is particularly significant for marketers serving locations far from the refinery. Under conventional arrangements, products transported over long distances incur additional expenses related to haulage, vehicle operations, driver salaries, insurance, road risks, and other logistics. Removing these costs improves the economics of supplying distant markets and creates greater scope for competitive pricing.
The initiative also reduces operational risks associated with moving large volumes of petroleum products across long distances. By taking products closer to their destination markets, the refinery shortens the supply chain and improves the reliability and efficiency of distribution.
Ukadike commended the refinery’s management for the initiative and urged the company to extend the programme to more locations across the country, particularly in northern states, to promote wider access to competitively priced petroleum products.
He described the development as a practical demonstration of the benefits of competition and deregulation in Nigeria’s downstream petroleum sector.
“This is the beauty of deregulation and competition,” he said.
The expansion comes as Nigeria’s downstream sector continues to adjust to growing domestic refining capacity and a more competitive market environment. The Dangote Petroleum Refinery, with a capacity of 700,000 barrels per day, is increasingly supplying refined products to the domestic market while also expanding its presence internationally.
The free delivery initiative adds another dimension to the refinery’s impact on the downstream sector. Beyond increasing domestic supply, the refinery is now taking active steps to reduce the cost of moving those products from the refinery gate to consumers.
For motorists and households, the potential benefit is straightforward: the lower the cost of moving petrol through the supply chain, the greater the opportunity for marketers to reduce the price consumers pay at the pump.
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