Dangote Petroleum Refinery & Petrochemicals has expanded its free petroleum product delivery initiative to Kano, Imo, Anambra and Nasarawa states, in a move aimed at reducing distribution costs and creating greater room for lower petrol prices.
The initiative, which previously covered Lagos, Ogun, Rivers, Kaduna, Abuja and Delta states, is designed to bring refined petroleum products closer to independent marketers and retailers while reducing the cost of transporting products over long distances.
By absorbing delivery expenses, the refinery is taking on a significant component of the downstream distribution chain, potentially freeing up marketers’ working capital and giving them greater flexibility to adjust pump prices.
Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko Dangote, said the initiative was designed to ensure that the benefits of domestic refining extend beyond the refinery gate to businesses and consumers.
“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,” she said.
According to her, the initiative is intended to make fuel distribution more efficient, eliminate avoidable costs and support more competitive pump prices across the country.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the expansion, saying the arrangement could ease financial and logistical pressures on independent marketers while contributing to lower prices for consumers.
IPMAN National Publicity Secretary and Public Relations Officer, Chinedu Ukadike, said the initiative addressed the longstanding challenge of marketers committing funds to petroleum products and waiting for extended periods before their orders are loaded and transported.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said.
He said the delivery arrangement would reduce the period during which marketers’ funds remained tied up, improve cash flow and allow them to deploy their capital more efficiently.
According to Ukadike, lower transportation costs could also translate into reduced retail prices because logistics expenses are ultimately reflected in the price paid by consumers.
“The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.
The initiative could particularly benefit marketers supplying areas far from the refinery, where haulage, vehicle operations, drivers’ costs, insurance, road risks and other logistics expenses can significantly increase the final cost of petroleum products.
IPMAN urged Dangote Refinery to extend the programme to more locations, particularly in northern Nigeria, describing it as a practical demonstration of the benefits of competition and deregulation in the downstream petroleum sector.
Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) has called on the Rivers State Government to develop a comprehensive Compressed Natural Gas (CNG) programme to reduce transportation costs, attract investment and harness the state’s natural gas resources.
PETROAN National President, Dr Billy Gillis-Harry, made the call while speaking to journalists in Lagos during an inspection of CNG refuelling locations.
Gillis-Harry said Rivers State, as a major hydrocarbon-producing hub, was strategically positioned to develop a stronger domestic gas economy rather than remain primarily a crude oil-producing state.
In a statement signed by Chris Odia, PETROAN said it was ready to partner with the Rivers State Government, federal agencies under the Presidential Initiative on CNG and Electric Vehicles (Pi-CNG & EV), and private sector operators to expand access to affordable and lower-emission transportation.
The association urged Rivers State to study the emerging CNG model in Lagos and adapt it to its industrial base, transportation requirements and gas resources.
PETROAN proposed the establishment of a Rivers State CNG Conversion and Transportation Programme, including conversion centres along major transport corridors and additional refuelling infrastructure through partnerships with private gas investors.
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It also called for the integration of CNG-powered buses into the public transport system and the gradual adoption of gas-powered vehicles by government ministries, departments and agencies.
The association further recommended affordable financing schemes to help commercial drivers retrofit high-mileage buses and taxis.
PETROAN said the transition to gas should be viewed as an opportunity for downstream operators, with filling station owners encouraged to transform their outlets into multi-energy hubs offering petrol, diesel and CNG.
