Dangote Petroleum Refinery has commenced free delivery of Premium Motor Spirit (PMS), popularly known as petrol, to the Federal Capital Territory (FCT), Abuja, and five other states as part of efforts to improve product distribution and reduce logistics costs for bulk buyers across Nigeria.
The company announced the initiative on Wednesday, stating that the free delivery service covers Lagos, Ogun, Rivers, Kaduna and Delta states, alongside the FCT.
According to Dangote refinery, the offer is available to customers purchasing a minimum of 250,000 litres of petrol, while its ex-depot price remains unchanged at ₦1,075 per litre.
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The latest move comes amid heightened competition in Nigeria’s downstream petroleum sector, where marketers have continued to adjust pump prices following successive reductions by the Dangote Refinery.
The company recently announced its fourth downward review of the gantry price of petrol, lowering the ex-depot price to ₦1,075 per litre. The reduction has influenced retail prices nationwide as marketers source products at lower rates.
Industry observers believe the free logistics arrangement could further reduce operating costs for major marketers and distributors, particularly those supplying high-demand urban centres where transportation expenses significantly affect final pump prices.
The development also follows a recent engagement between Dangote Refinery and stakeholders in Nigeria’s downstream petroleum industry. Discussions focused on cost-reflective pricing and improving product availability across the country.
Stakeholders expressed support for additional price reductions where market conditions permit, citing the need to ease the burden of rising transportation and energy costs on consumers.
The President of IPMAN, Abubakar Maigandi, recently disclosed that petrol prices had fallen by about ₦125 per litre over the past three weeks.
According to him, filling stations now sell petrol between ₦1,155 and ₦1,299 per litre, depending on location, transportation costs and marketers’ pricing strategies.
Analysts say the continued decline in wholesale prices could encourage stronger competition among fuel retailers while providing further relief for consumers if the reductions are sustained.
The refinery’s latest distribution initiative is expected to improve supply efficiency in the covered states and reduce delivery costs for eligible bulk buyers, with motorists hoping the savings will eventually translate into lower pump prices nationwide.
