The Dangote Petroleum Refinery has expanded its free petroleum product delivery programme to four more states, taking the total coverage to 14 states across Nigeria.
Kano, Imo, Anambra and Nasarawa have now joined the initiative, which was introduced to reduce the transportation costs faced by independent petroleum marketers and potentially create room for lower petrol prices.
The programme initially covered Lagos, Ogun, Rivers, Kaduna, Abuja and Delta. By delivering products closer to marketers, the refinery is absorbing part of the logistics expenses normally associated with long distance transportation.
The News Chronicle reports that the initiative could provide significant relief for marketers whose funds are often tied up while waiting for products to be transported from distant locations. The Independent Petroleum Marketers Association of Nigeria also welcomed the move, saying it could improve cash flow and reduce operational pressure.
Fatima Aliko Dangote, group executive director for commercial operations, stated that the deal ensures that downstreamers and consumers benefit from the Dangote refinery.
IPMAN Spokesman Chinedu Ukadike noted that things will improve as transportation charges are likely to reduce, and lower petrol prices would eventually benefit ordinary citizens at the pumps.
The deal will be advantageous, primarily in the northern markets because haulage fees tremendously add to the final cost of petroleum products in the region.
IPMAN has asked the Dangote Refinery to reciprocate in other places because it will improve competition in the downstream sector and create better prices in the market.
