KEY POINTS
- Dangote Refinery has expanded free fuel deliveries to Kano, Imo, Anambra and Nasarawa, adding to earlier beneficiary locations.
- IPMAN says the initiative will reduce transportation and cash-flow pressures on independent marketers.
- Lower distribution costs could give marketers more room to reduce petrol prices and ease pressure on consumers.
The Dangote Petroleum Refinery and Petrochemicals has expanded its free petroleum products delivery programme to Kano, Imo, Anambra and Nasarawa states as part of efforts to reduce distribution costs and create room for lower petrol prices across Nigeria.
The initiative, which was initially introduced in Lagos, Ogun, Rivers, Kaduna and Delta states, as well as the Federal Capital Territory, is designed to bring refined petroleum products closer to independent marketers and retailers.
By taking responsibility for the cost of transporting products to selected locations, the refinery is effectively removing a major expense from the downstream supply chain. The savings, according to the company, could ultimately be passed on to businesses and motorists through more competitive pump prices.
The Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko-Dangote, said the initiative was aimed at ensuring that the benefits of domestic refining extended beyond the refinery itself.
She explained that absorbing delivery expenses would reduce the financial burden on marketers and create an opportunity for savings to move through the distribution chain to consumers.
“Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria,” she said.
The refinery’s intervention is particularly significant for markets located far from its facility, where transportation can account for a substantial portion of the final cost of petroleum products.
IPMAN welcomes the expansion
The Independent Petroleum Marketers Association of Nigeria,IPMAN, welcomed the initiative, describing it as a major relief for independent petroleum marketers who have faced high logistics costs and delays in accessing products.
IPMAN’s National Publicity Secretary, Chinedu Ukadike, said the arrangement could ease the financial pressure on marketers by reducing the period their funds remain tied up after purchasing products.
According to him, marketers often pay for petroleum products but experience delays before their orders are loaded and transported, creating cash-flow difficulties and additional operating expenses.
Ukadike said the new delivery arrangement would make it easier for marketers to receive products closer to their areas of operation, allowing them to deploy their capital more efficiently.
He also argued that the savings from lower transportation expenses could eventually translate into reduced petrol prices for consumers.
