Dangote expands free petrol delivery scheme to four more states

By Firdaus Jibril

Dangote Petroleum Refinery has expanded its free petrol delivery programme to four additional states, extending the initiative to Kano, Imo, Anambra and Nasarawa.

The four states join Lagos, Ogun, Rivers, Kaduna, the Federal Capital Territory and Delta, bringing the number of locations covered by the programme to 10.

Under the arrangement, eligible petroleum marketers can purchase petrol from the refinery at ₦1,165 per litre and have the product delivered at no additional delivery cost.

Marketers must purchase a minimum of 250,000 litres in a single transaction to qualify for the offer.

The refinery is also offering qualifying buyers a 10-day credit period, allowing them to settle payment after taking delivery of the product.

Dangote’s latest expansion brings the free-delivery programme to markets in the North and South-East, potentially reducing some of the logistics costs associated with moving petrol over long distances from coastal supply points.

For marketers operating in Kano, Imo, Anambra and Nasarawa, the arrangement removes the delivery charge that would otherwise form part of the cost of transporting petrol to their markets.

The programme also provides a financing benefit through the 10-day payment window, which reduces the amount of working capital marketers need to commit immediately when purchasing the minimum 250,000-litre volume.

However, the reduction in delivery costs does not automatically translate into a lower pump price for consumers, as the final retail price remains dependent on the pricing decisions and other operating costs of individual marketers.

The expansion comes amid continuing competition and price negotiations in Nigeria’s downstream petroleum market, with Dangote Refinery’s ex-depot petrol price having changed several times in recent months.

The refinery has indicated that the free-delivery rollout will continue to expand, potentially extending the cost-saving arrangement to additional markets.

Marketers seeking to participate in the programme can contact the refinery through its designated delivery channels.