Dangote Begins Free Petrol Delivery to Abuja, Five States

Dangote Petroleum Refinery has commenced free delivery of Premium Motor Spirit (PMS), commonly known as petrol, to Abuja and five states while retaining its ex-depot price of N1,075 per litre, in a move that could reduce distribution costs for fuel marketers and influence pump prices across parts of Nigeria.

Dangote Petroleum Refinery said on Wednesday that customers buying at least 250,000 litres of petrol will qualify for free product delivery to Lagos, Ogun, Rivers, Kaduna, Delta and the Federal Capital Territory, Abuja.

The company announced the initiative in a notice posted on its official X account, saying the offer forms part of its fuel distribution arrangements while its ex-depot price remains unchanged at N1,075 per litre.

The latest distribution initiative follows a recent engagement between the refinery and stakeholders in Nigeria's downstream petroleum sector on cost-reflective fuel pricing. The meeting ended with participants backing further reductions in petrol prices as competition in the market continues to grow.

The refinery has also cut its gantry price four times in recent months, bringing the wholesale price of petrol down to N1,075 per litre.

The price reductions are already filtering through the retail market. President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Maigandi, recently said petrol prices have fallen by about N125 per litre within three weeks, with pump prices now ranging between N1,155 and N1,299 per litre, depending on location and individual marketers.

The free delivery scheme comes as competition in Nigeria's downstream petroleum sector intensifies following the deregulation of petrol prices and the emergence of domestic refining capacity. Marketers have increasingly adjusted prices in response to changes in wholesale costs and supply conditions.

Distribution costs could decline

The free delivery programme could lower transportation expenses for large-volume fuel buyers, particularly those supplying areas outside Lagos where logistics often add significantly to pump prices. If marketers pass on the savings, consumers could see more competitive petrol prices in the affected locations.

The latest announcement marks an expansion of Dangote Refinery's fuel distribution programme, which was first introduced in 2025 to reduce logistics costs and improve nationwide fuel supply.

The current phase extends free petrol delivery to customers in Abuja and five states purchasing at least 250,000 litres, while maintaining the refinery's ex-depot price of N1,075 per litre.