Dangote begins free fuel deliveries to marketers

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Independent fuel marketers in Nigeria have begun receiving free fuel deliveries from Dangote Refinery, following the deployment of compressed natural gas-powered trucks aimed at easing distribution costs and stabilising pump prices.

The president of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima, confirmed on Friday that marketers in Lagos, Ogun, Ondo and other South-Western states had started taking delivery of petroleum products from the refinery without transport charges.

“Dangote has started the free delivery. Already, the trucks have begun moving and discharging products in most parts of the Western Zone. My members are very pleased with the development,” Shettima said.

Earlier in the week, the refinery rolled out over 1,000 trucks, part of a larger fleet of 4,000 CNG-powered vehicles ordered from China. The scheme, originally scheduled to commence on August 15, had been delayed by shipping bottlenecks. The remaining trucks are expected to arrive in Nigeria before October.

Shettima stressed that only registered marketers would benefit from the logistics-free supply, though registration remains open through an online portal. “If you don’t register, your name will not appear on the system. But registration is straightforward and can be done anytime,” he explained.

The initiative is already having an impact on fuel prices. According to the IPMAN president, pump prices are expected to fall from 865 naira per litre to around 841 naira once supplies spread across different regions. “Prices have started coming down already. Wherever the refinery discharges, independent marketers reduce their pump prices accordingly,” he said.

Some filling stations, including those operated by MRS, have reportedly lowered their prices in line with the deliveries.

The refinery’s direct distribution approach is designed to bypass middlemen, cut logistics costs for marketers, and bring relief to motorists facing high fuel prices since subsidy removal in 2023.