Dangote refinery expands free fuel delivery to four states

Dangote Petroleum Refinery has expanded its free fuel delivery program to include Kano, Imo, Anambra, and Nasarawa states, aiming to decrease distribution costs for independent petroleum marketers and help lower petrol prices, according to a recent statement. The initiative, initially covering Lagos, Ogun, Rivers, Kaduna, Abuja, and Delta states, seeks to bring petroleum products closer to marketers and retailers, ultimately reducing the costs embedded in the downstream petroleum distribution chain.

Dangote Industries Limited's Commercial Operations Group Executive Director, Fatima Aliko Dangote, emphasized that the initiative was designed to ensure that the benefits of domestic refining are felt beyond the refinery gate, by eliminating a significant portion of the distribution burden and creating room for savings to flow to consumers.

Independent Petroleum Marketers Association of Nigeria welcomed the expansion, stating it would alleviate financial and logistical pressures faced by marketers, leading to lower prices for consumers. The group's Publicity Secretary, Chinedu Ukadike, highlighted how the initiative addresses longstanding challenges in the distribution chain, such as marketers holding onto funds for extended periods without product deliveries, resulting in financial hardships and inefficiencies.

Dangote noted that the reduction in distribution costs is particularly beneficial for marketers supplying areas far from the refinery, as it removes additional expenses related to haulage, vehicle operations, driver costs, insurance, and road risks. The expansion comes as Nigeria's downstream petroleum sector adjusts to increased domestic refining capacity and a more competitive market environment.