Dangote Petroleum Refinery has commenced the first phase of its free delivery programme for Premium Motor Spirit (PMS), popularly known as petrol, to six locations across Nigeria, in a move expected to reduce distribution costs and strengthen fuel supply across parts of the country.
The refinery announced on Wednesday that the initiative covers Lagos, Ogun, Rivers, Kaduna, Delta and the Federal Capital Territory (FCT), Abuja, while retaining its ex-depot, or gantry, price of ₦1,075 per litre.
The company said additional states would be brought into the programme in subsequent phases.
According to the refinery, the free delivery applies to customers purchasing a minimum of 250,000 litres of petrol, a policy aimed at supporting bulk marketers and other large-volume buyers.
The announcement follows a series of engagements between the refinery and stakeholders in the downstream petroleum sector on measures to reduce fuel distribution costs and improve nationwide availability of petroleum products.
The development comes barely a week after Dangote Refinery reduced its ex-depot price from ₦1,125 to ₦1,075 per litre, marking another price adjustment in recent months as competition intensifies in Nigeria’s deregulated downstream oil market.
Industry observers believe the latest logistics incentive could further lower marketers’ operating costs and ultimately translate into more affordable pump prices for motorists if the savings are passed on to consumers.
The refinery had earlier unveiled plans for a nationwide fuel distribution scheme, announcing the acquisition of thousands of Compressed Natural Gas (CNG)-powered tankers and investments in supporting infrastructure to eliminate logistics bottlenecks in the movement of petroleum products across the country.
The company said the broader initiative is designed to improve energy accessibility, revive dormant filling stations, create jobs and stimulate economic activities, particularly in underserved communities.
Industry groups have also reported a gradual decline in retail petrol prices in recent weeks following successive reductions in Dangote Refinery’s ex-depot price.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) said pump prices have fallen by about ₦125 per litre over the past three weeks, although retail prices continue to vary across states depending on transportation costs, marketers’ margins and other operational expenses.
Commissioned in 2023 and now operating at full refining capacity, the 650,000-barrel-per-day Dangote Petroleum Refinery has emerged as Africa’s largest single-train refinery.
Since commencing petrol production, the facility has continued to expand supplies to the domestic market while increasing exports of refined petroleum products to several African countries, reinforcing its position as a key player in Nigeria’s energy sector.
