Dangote Petroleum Refinery has rolled out a major direct distribution strategy, providing free petrol delivery to six select states across Nigeria.
In a statement via its X handle on Wednesday, the $20 billion refinery indicated that the free delivery scheme will start in Lagos, Ogun, Rivers, Kaduna, Abuja and Delta.
It added that the scheme will be rolled out soon in other states across the federation.
The company explained that Premium Motor Spirit (PMS), also known as petrol, will be sold at N1,075 per litre, which is the current price at the refinery’s gantry.
This move follows the refinery’s decision to move away from its previous exclusive consortium distribution structure, opening up direct product loading to all qualified marketers. By cutting out middleman logistics costs, the initiative is designed to directly lower the retail price of petrol for everyday motorists.
The refinery said the offer is available to marketers buying a minimum of 250,000 litres of petrol.
The deliveries will be powered by the company’s newly deployed fleet of Compressed Natural Gas (CNG) trucks, which substantially slashes transportation overhead and emissions compared to traditional diesel-powered tankers.
It would be recalled that the Dangote Refinery had proposed to commence direct fuel supply to independent petroleum marketers and other bulk fuel buyers in August last year.
The company emphasised the need to make petroleum products available in every part of the country at an affordable cost.
It subsequently imported thousands of CNG-powered trucks to drive the scheme.
However, following agitations by major marketers, who accused the refinery of attempts to monopolize the market, it agreed after a negotiation meeting led by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to suspend the direct distribution model.
The latest move comes shortly after the Federal Government met with Dangote Refinery and other stakeholders in Nigeria’s downstream petroleum sector to discuss cost-reflective pricing for petrol.
The engagement followed nationwide reactions by Nigerian consumers that the drop in the pump price of fuel is not commensurate with the falling crude oil prices in the international market.
The stakeholders expressed support for further reductions in fuel prices.
Independent petroleum marketers called on the Federal Government to allow importation, while supporting local refineries to boost domestic production as a way of bringing down the pump prices of fuel across the country.
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The call followed the Federal Government’s push for marketers to lower retail prices to match falling global crude benchmarks.
National President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, called for independent marketers to be given direct access to get supplies from the Dangote Refinery.
He stated that restoration of fuel importation and direct access to the refinery would engender greater competition, leading to a reduction of petrol price to about N800 per litre.
Independent marketers who control about 70 per cent of Nigeria’s retail filling stations have been buying from third-party private depots over the years.
Maigandi stated that adopting the direct supply model would be a game changer for the domestic pricing of energy products.
While noting that the retail price of petrol had dropped by N125 per litre over the past three weeks, with pump prices now ranging between N1,155 and N1,299 per litre, the IPMAN president assured that marketers were prepared to further slash pump prices if market conditions remain favourable.
Victor Ezeja is a Nigerian journalist skilled in producing insightful news analyses, feature stories, and interviews that simplify complex issues and drive informed public discourse. His work combines rigorous research, balanced reporting, and compelling storytelling to highlight developments shaping industries and society. Victor, who holds a Master's Degree in Mass Communication, specializes in energy, aviation, business, and economic reporting. He can be reached via @VICTOREZEJA on X