Dangote Petroleum Refinery has commenced its Free Petrol Delivery programme to the Federal Capital Territory (FCT) and five states, marking another major step in its efforts to improve Nigeria’s fuel distribution network.
Under the initiative, marketers purchasing Premium Motor Spirit (PMS), commonly known as petrol, directly from the refinery will receive deliveries without paying transportation costs, while the ex-depot price remains at ₦1,075 per litre.
The latest move is designed to reduce logistics expenses for fuel marketers, improve supply efficiency and strengthen the downstream petroleum sector. Industry analysts believe the programme could also contribute to better product availability and encourage more competitive petrol prices across the country.
First Phase Covers Abuja and Five States
According to Dangote Refinery, the first phase of the Free Petrol Delivery programme covers the Federal Capital Territory and five states, with plans already in place to extend the service to more locations as distribution capacity expands.
The refinery stated that independent marketers who buy petrol directly from its facility will benefit from the initiative at no extra transportation cost.
By taking responsibility for haulage expenses, the company aims to simplify the fuel supply chain and make it easier for marketers to deliver products to filling stations.
Transportation remains one of the biggest costs in fuel distribution after the ex-depot price. Eliminating this expense is expected to ease operational costs for marketers while supporting a more efficient nationwide supply system.
Industry experts say the initiative could also improve access to petrol in areas that frequently experience supply challenges, especially as the refinery continues to increase its refining and distribution capacity.
Lower Logistics Costs Could Benefit Businesses
Although retail petrol prices are still influenced by factors such as global crude oil prices, foreign exchange rates and operating expenses, analysts believe lower distribution costs could help reduce pricing pressure within the downstream market.
The Free Petrol Delivery programme is also expected to deliver wider economic benefits beyond the petroleum sector.
Reduced transportation costs may help businesses lower operating expenses, improve the movement of goods and services and support commercial activities across different industries.
For Nigeria’s housing and construction sector, improved fuel availability and lower logistics costs could reduce the cost of transporting building materials and operating heavy equipment, factors that often contribute to overall construction expenses.
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As Dangote Refinery continues expanding its nationwide distribution network, industry stakeholders believe initiatives such as this could strengthen domestic fuel supply, reduce dependence on third-party logistics providers and improve market competition.
With the rollout already underway in Abuja and five states, many observers will be watching closely to see how the programme influences fuel availability, distribution efficiency and pump prices as it expands to other parts of the country.
