The Dangote Petroleum Refinery has expanded its free petroleum products delivery initiative to Kano, Imo, Anambra and Nasarawa states, in a move expected to cut distribution costs and create room for lower petrol prices across Nigeria.
The refinery announced the expansion in a statement on Sunday, saying the goal is to bring products closer to marketers and eliminate long-haul transportation costs from Lagos to distant parts of the country.
The free delivery scheme initially covered Lagos, Ogun, Rivers, Kaduna, Abuja and Delta. With the addition of four new states, Dangote says it is absorbing one of the biggest expenses in the downstream value chain.
Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, *Fatima Aliko Dangote*, said the initiative ensures Nigerians feel the impact of domestic refining.
*_“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.
Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria,”__ she stated.
The *Independent Petroleum Marketers Association of Nigeria, IPMAN*, welcomed the expansion, saying it would ease financial and logistical pressure on marketers.
IPMAN National Publicity Secretary, *Chinedu Ukadike*, said the initiative tackles a long-standing problem where marketers pay for products but wait days or weeks before loading.
*“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers. There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down,”* he said.
According to Ukadike, the delivery arrangement will reduce the time funds remain tied up, improve cash flow, and allow marketers to deploy capital more efficiently.
Dangote noted that transportation over long distances adds major costs — haulage, vehicle operations, driver pay, insurance and road risks. By delivering directly, the refinery said it reduces these costs and the operational risks of moving large volumes of fuel.
The company added that removing these expenses gives marketers supplying far states more room to compete on retail prices.
*700,000 bpd Refinery Driving Market Shift*
The expansion comes as Nigeria’s downstream sector adjusts to increased domestic refining. The *700,000 barrels-per-day Dangote Refinery* has been supplying the local market while also expanding exports.
Industry watchers say the free delivery model could force other depot owners to review logistics costs, potentially leading to more competitive pricing nationwide.
