By Opeyemi Adelakun
Dangote Petroleum Refinery has widened its footprint in Nigeria’s downstream petroleum market with the launch of a free petrol distribution scheme covering the Federal Capital Territory (FCT) and five states, a move expected to ease logistics costs for bulk buyers and strengthen competition in the sector.
The refinery announced on Wednesday that customers purchasing a minimum of 250,000 litres of Premium Motor Spirit (PMS), popularly known as petrol, will enjoy free delivery to designated locations without any increase in its ex-depot price of ₦1,075 per litre.
Under the new arrangement, the free haulage service will be available to customers in Abuja, Lagos, Ogun, Rivers, Kaduna and Delta states.
The latest initiative comes as the privately owned refinery continues to expand its influence in the domestic fuel market following successive reductions in its ex-depot petrol price.
Industry observers believe the distribution incentive could reduce transportation costs for marketers, improve product availability and intensify price competition among fuel suppliers nationwide.
The rollout follows recent consultations between Dangote Refinery and key stakeholders in Nigeria’s downstream petroleum industry on the need for cost-reflective pricing of petrol in the deregulated market.
The engagement ended with participants backing additional reductions in fuel prices as market conditions improve.
In recent weeks, the refinery has implemented multiple downward adjustments to its gantry price, with the latest reduction bringing the ex-depot rate to ₦1,075 per litre.
The impact of the price cuts is already being felt across the retail market.
President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, recently disclosed that the pump price of petrol had dropped by about ₦125 per litre within the last three weeks.
According to him, motorists currently buy petrol at between ₦1,155 and ₦1,299 per litre, depending on location and the marketer.
The refinery’s latest logistics incentive is expected to further accelerate competition in the downstream sector, with industry players anticipating that lower distribution costs could translate into more competitive pump prices in the weeks ahead.
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