The Dangote Petroleum Refinery has commenced free delivery of petroleum products to independent fuel marketers in Nigeria, using its newly deployed fleet of compressed natural gas (CNG)-powered trucks to reduce distribution costs and stabilise pump prices.

The President of the Independent Petroleum Marketers Association of Nigeria (IPMAN), Abubakar Shettima, confirmed the development on Friday, noting that marketers in Lagos, Ogun, Ondo and other South-West states have started receiving 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 this week, the refinery rolled out over 1,000 CNG-powered trucks, part of a total order of 4,000 vehicles from China. The initiative, initially scheduled for August 15, was delayed by shipping bottlenecks. The remaining trucks are expected to arrive in Nigeria before October.

Shettima explained that only registered marketers would benefit from the logistics-free supply, although registration remains open via 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 added.

The initiative is already impacting fuel prices across the country. According to Shettima, pump prices are expected to fall from the current average of ₦865 per litre to around ₦841 as supplies expand. “Prices have started coming down already. Wherever the refinery discharges, independent marketers reduce their pump prices accordingly,” he said.

Some filling stations, including outlets operated by MRS, have already reduced their pump prices in response to the deliveries.

By adopting direct distribution, the Dangote Refinery aims to cut out middlemen, ease logistics burdens on marketers, and provide relief to motorists grappling with high fuel costs since the removal of petrol subsidy in 2023.