The Dangote Petroleum Refinery has expanded its free petroleum-products delivery programme to Kano, Imo, Anambra and Nasarawa states, in a move aimed at reducing distribution costs and creating room for more competitive petrol prices.
The latest expansion means the initiative now covers nine states and the Federal Capital Territory, following the earlier inclusion of Lagos, Ogun, Rivers, Kaduna, Delta and Abuja.
Under the arrangement, Dangote Refinery will absorb the cost of transporting petroleum products to participating customers, removing a major expense normally borne by independent petroleum marketers.
The company said the objective is to bring products closer to marketers and retailers while reducing the logistics costs associated with moving fuel over long distances from the refinery in Lagos.
Fatima Aliko-Dangote, Group Executive Director at Dangote Industries, said the company wants the benefits of domestic refining to extend beyond the refinery itself. She explained that reducing avoidable distribution expenses could help support more competitive prices at filling stations.
The initiative could also ease pressure on marketers who previously had to cover transportation, insurance, vehicle maintenance and other costs involved in moving petroleum products from the refinery to distant markets.
However, the expansion does not automatically mean that petrol prices will fall by a specific amount. The final price paid by consumers will also depend on the refinery's selling price, exchange rates, financing costs and the margins applied by marketers and filling stations.
The programme is part of Dangote Refinery's broader effort to strengthen the domestic petroleum supply chain and improve the distribution of locally refined products across Nigeria.
The refinery, which has a nameplate capacity of 650,000 barrels per day, has also been increasing its output and supplying petroleum products to both the Nigerian market and international destinations.
With Kano, Imo, Anambra and Nasarawa now added to the programme, marketers in the four states are expected to benefit from reduced transportation expenses, potentially creating greater competition in the downstream fuel market.
The latest expansion is being closely watched by motorists and other fuel consumers who hope that lower distribution costs will eventually translate into cheaper petrol prices across the affected states.
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