Amanze Chinonye
Dangote Petroleum Refinery has expanded its free petroleum products delivery programme to Kano, Imo, Anambra and Nasarawa states, extending the initiative to 10 locations as the refinery seeks to reduce distribution costs for participating petroleum marketers.
The programme previously covered Lagos, Ogun, Rivers, Kaduna and Delta states, as well as the Federal Capital Territory.
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Fatima Aliko-Dangote, Group Executive Director for Commercial Operations, Oil and Gas, WAEP and Fertiliser at Dangote Industries, announced the expansion in a company statement issued on Sunday.
“The value of domestic refining must ultimately be felt beyond the refinery gate,” Aliko-Dangote said.
She said the refinery would absorb the cost of delivering petroleum products to customers covered by the programme, reducing the financial and logistical burden associated with transporting products from the refinery near Lagos to distant markets.
“Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria,” she said.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) welcomed the initiative. Its spokesman, Chinedu Ukadike, said the arrangement would help ease financial and logistical pressures on independent marketers.
Ukadike said marketers could have substantial funds tied up while waiting for products to be loaded and transported, adding that the free-delivery arrangement would improve cash flow and reduce transportation-related pressures.
Transportation costs can add to the expense incurred by marketers supplying distant markets. Under Dangote’s arrangement, the refinery assumes the delivery cost for customers covered by the programme.
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The expansion therefore extends the refinery’s role beyond production to the distribution of its products, bringing its free-delivery service to markets in northern and southeastern Nigeria.
Dangote has said reducing distribution costs is intended to create room for more competitive pump prices, but the latest announcement does not constitute a nationwide pump-price cut.
Earlier promotional terms for the programme offered free delivery to qualifying marketers purchasing at least 250,000 litres, alongside a 10-day credit facility.
Dangote Petroleum Refinery has a nameplate capacity of 650,000 barrels per day and supplies refined petroleum products to Nigeria’s domestic market.
The refinery also exports refined products, including petrol, diesel and aviation fuel, to international markets.
The expansion brings the free-delivery programme to nine states and the Federal Capital Territory, broadening Dangote’s distribution network as Nigeria’s downstream petroleum sector adjusts to increased domestic refining capacity.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
