Dangote Petroleum Refinery announced on Sunday that it will begin distributing petrol and diesel to marketers, petrol dealers, manufacturers, telecommunications firms, aviation companies, and other large users nationwide without the buyers bearing the cost of logistics.
This is a major departure from the norm, in which logistic costs are added to product costs to determine the retail prices of petroleum products across Nigeria, resulting in higher prices the farther away from Lagos a location is.
The Dangote Refinery said it has invested in 4,000 brand-new CNG-powered tankers to ensure a smooth rollout of its new initiative.
The refinery will also establish CNG stations, or "daughter booster stations," supported by a fleet of over 100 CNG tankers to facilitate seamless product delivery.
"This strategic program underscores our commitment to eliminating logistics costs, enhancing energy efficiency, promoting sustainability, and supporting Nigeria's economic development," the Dangote Petroleum Refinery said in a press statement. "We aim to improve the availability and affordability of fuel for all Nigerians."
Under the initiative, petrol stations purchasing petrol and diesel from Dangote Petroleum Refinery will receive enhanced logistics support at no additional cost. Key sectors, such as manufacturing and telecommunications, are expected to benefit from reduced fuel expenses, which will help lower production costs and stimulate economic growth.
The refinery announced it will offer a credit facility for purchases of at least 500,000 liters, allowing buyers to obtain an additional 500,000 liters on credit for two weeks, with a bank guarantee.
Buyers will have to register with the company within 60 days starting from Monday.
Last week, Aliko Dangote, the founder of the refinery, revealed plans for an initiative that promises to bring significant changes to the downstream sector of the petroleum industry, although he did not provide any specifics.
Sunday's announcement could make petroleum product retail prices the same across Nigeria.
