Dangote refinery expands free fuel delivery to four states

The Dangote Petroleum Refinery is expanding its free petroleum product delivery initiative to include Kano, Imo, Anambra, and Nasarawa states. This move is intended to lower distribution costs for independent petroleum marketers and create conditions for reduced petrol prices nationwide. The initiative, which initially covered Lagos, Ogun, Rivers, Kaduna, Abuja, and Delta states, aims to bring fuel products closer to marketers and retailers by eliminating long-distance transportation expenses from the refinery.

By absorbing delivery costs, the refinery seeks to reduce a major expense within the downstream petroleum distribution chain. Fatima Aliko Dangote, Group Executive Director for Commercial Operations, Oil & Gas, WAEP and Fertiliser at Dangote Industries Limited, emphasized the goal of ensuring domestic refining benefits reach consumers. "The value of domestic refining must ultimately be felt beyond the refinery gate," she stated. "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."

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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.

The Independent Petroleum Marketers Association of Nigeria (IPMAN) has welcomed the expansion, noting that it addresses a persistent challenge for independent marketers. IPMAN's National Publicity Secretary, Chinedu Ukadike, highlighted the financial and logistical pressures marketers face, including significant capital being tied up in product purchases while awaiting loading and transportation. "This gesture, if sustained, will be able to alleviate the sufferings of independent marketers," Ukadike said.

According to Ukadike, the refinery's delivery arrangement shortens the period marketers' funds are held, improves cash flow, and allows businesses to utilize their capital more effectively. The reduction in distribution costs is particularly beneficial for marketers serving areas far from the refinery, as it mitigates the expense of transporting petroleum products over long distances.

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This gesture, if sustained, will be able to alleviate the sufferings of independent marketers. 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.