KEY POINTS
- Dangote refinery partners with Conoil, Eterna, and others for free fuel delivery nationwide.
- Scheme covers 11 states initially, using 1,000 CNG-powered trucks to cut transport costs.
- Move aims to lower pump prices but raises concerns among tanker drivers and depot owners.
Nigeria’s Dangote Petroleum Refinery is teaming up with some of the country’s biggest petroleum marketers to launch a free fuel delivery scheme, a move designed to slash logistics costs and bring down pump prices nationwide.
Conoil PLC and Eterna PLC are among the first to sign on, alongside Golden Super, Nepal Energies, Kifayat Global Energy, and Riquest and Gas, according to a statement posted by Dangote Group on Monday. The programme eliminates transport fees for refined petrol supplied directly from the 650,000-barrel-per-day Lekki refinery to participating fuel stations and bulk buyers.
“Join leading marketers like Conoil, Eterna, and others to enjoy the benefits of free delivery and offer Nigerians lower pump prices,” the company said in its announcement.
The scheme is expected to roll out initially in 11 states—Lagos, Ekiti, Abuja, Ogun, Oyo, Ondo, Osun, Kwara, Delta, Rivers, and Edo—before being expanded nationwide. Filling station operators have been urged to register early to secure slots in what could reshape fuel supply chains across the country.
Logistics Shake-Up for Nigeria’s Fuel Market
At the heart of the initiative are more than 1,000 compressed natural gas-powered trucks deployed by Dangote to handle distribution at no cost to retailers. By removing delivery charges that typically inflate retail prices, the refinery aims to pass savings directly to consumers at the pump.
Industry players say the effort could ease supply bottlenecks, improve efficiency, and set new benchmarks for downstream competition. But it has also sparked unease among tanker drivers, depot operators, and independent marketers, who fear their businesses could be squeezed as Dangote takes greater control of distribution.
The plan underscores the refinery’s growing role in reshaping Nigeria’s energy sector just months after commencing full-scale operations. With logistics one of the most expensive components in the fuel value chain, Dangote’s move signals both a competitive play and a public appeal amid ongoing concerns about affordability and inflation.
If successful, the free delivery model could redefine pricing dynamics in Africa’s largest fuel market, offering relief to consumers while intensifying pressure on smaller market operators to adapt.
