*Marketers laud initiative as refinery absorbs delivery costs to reduce distribution expenses, ease pressure on consumers
Peter Uzoho
Dangote Petroleum Refinery and Petrochemicals has expanded its free petroleum products delivery initiative to Kano, Imo, Anambra, and Nasarawa states, a move expected to reduce distribution costs for independent petroleum marketers and create room for lower petrol prices at the pump.The initiative, which began with deliveries to Lagos, Ogun, Rivers, Kaduna, and Delta states, as well as Abuja, was designed to bring petroleum products closer to marketers and retailers while removing the cost of transporting products over long distances from the refinery to various parts of the country.
By absorbing the delivery cost, the refinery is reducing one of the key expenses built into the downstream distribution chain.Announcing that, in a statement yesterday, Group Executive Director, Commercial Operations, Oil & Gas, WAEP and Fertiliser, Fatima Aliko-Dangote, said the initiative was designed to ensure that the benefits of domestic refining translated into tangible savings for businesses and consumers.
Aliko-Dangote said, “The value of domestic refining must ultimately be felt beyond the refinery gate. By absorbing the cost of delivering petroleum products to our customers, we are removing a significant component of the distribution burden and creating room for those savings to flow through the value chain to consumers.“Our goal is to make fuel distribution more efficient, reduce avoidable costs and support more competitive pump prices across Nigeria.”
