Categories: News

Dangote refinery extends free fuel delivery to four more states

The Dangote Petroleum Refinery has expanded its free petroleum products delivery programme to Kano, Imo, Anambra and Nasarawa states as part of efforts to cut distribution costs and potentially drive down petrol prices.

The initiative, which previously covered Lagos, Ogun, Rivers, Kaduna, Abuja and Delta, allows petroleum marketers in the affected states to receive products without bearing the cost of transporting them from the refinery.

The refinery said absorbing the delivery costs would reduce one of the major expenses in the downstream supply chain and give marketers more room to offer products at competitive prices.

Fatima Aliko Dangote, Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Dangote Industries Limited, said the company wanted the benefits of domestic refining to extend beyond its operations.

She said removing transportation costs could help reduce avoidable expenses across the supply chain and allow some of the savings to reach consumers.

The development was welcomed by the Independent Petroleum Marketers Association of Nigeria, which said the arrangement could ease financial and logistical pressures on its members.

IPMAN National Publicity Secretary, Chinedu Ukadike, said marketers often have substantial funds tied up after paying for products while waiting for loading and transportation.

According to him, delivering products closer to their destination markets could improve marketers’ cash flow and reduce the financial burden associated with transporting fuel over long distances.

The cost of moving petroleum products typically includes haulage, vehicle operations, insurance, driver expenses and other logistics, particularly when supplies are transported from the refinery to distant markets.

Dangote said eliminating or reducing these expenses would improve the economics of supplying markets farther from the refinery and could create greater competition among retailers.

The expansion comes as Nigeria’s downstream petroleum sector adjusts to increased domestic refining capacity and changing market dynamics.

The Dangote refinery, located in Lagos, has a stated production capacity of 700,000 barrels per day and supplies refined petroleum products to the Nigerian market as well as international destinations.

LUKMAN ABDULMALIK

Recent Posts

EPL: Man City thrash 10-man Liverpool at Anfield

Manchester City shrugged off the threat of swingeing sanctions to beat 10-man Liverpool 3-0 in…

20 minutes ago

Tinubu defends reforms as World Bank projects 4.4% growth for Nigeria

President Bola Tinubu has cited a new World Bank report as evidence that his administration’s…

30 minutes ago

Motorists lament non-access to petrol discount at NNPC filling stations

Many motorists say they are yet to get the discount in pump price of petrol…

1 hour ago

Ogun 2027: Adebutu vows to challenge omission from INEC’s governorship list

The Peoples Democratic Party (PDP) governorship candidate in Ogun State, Ladi Adebutu, has vowed to…

3 hours ago

FULL LIST: US names 24 Nigerians arrested over fraud, money laundering

The United States Department of Homeland Security (DHS) has named 24 Nigerian nationals arrested by…

4 hours ago

2027: APC chieftain warns Atiku, Obi against fuel subsidy promises

An All Progressives Congress (APC) chieftain in Osun State, Olatunbosun Oyintiloye, has warned opposition presidential…

5 hours ago

This website uses cookies.