Dangote Refinery has unveiled a direct petrol distribution programme that could significantly reshape Nigeria's downstream petroleum market. Beyond eliminating transportation costs for qualified buyers, the initiative introduces a structured credit system, bulk purchase requirements and a direct supply model aimed at improving product availability across the country.
For independent marketers and major fuel distributors, understanding how the scheme works will be crucial to maximising its benefits. Based on details released by the refinery and additional clarifications provided to Petroleumprice.ng, here are five important things marketers should know before participating in the scheme
1. Free delivery comes with the official ₦1,075/litre gantry price:
Marketers will no longer bear transportation costs: Dangote Refinery will continue to sell Premium Motor Spirit (PMS) at its official ₦1,075 per litre gantry price while absorbing the cost of transporting products to qualified retail outlets under the first phase of the programme. The initiative is expected to reduce one of the biggest cost components in the downstream value chain, allowing marketers to receive products directly without paying additional haulage charges.
2. Qualified buyers can access a 10-day credit facility:
Bulk purchases unlock short-term financing: One of the biggest incentives under the scheme is a 10-day credit facility designed to improve marketers' cash flow. According to the refinery's clarification, marketers that purchase 250,000 litres and satisfy the required conditions, including providing a bank guarantee, can obtain subsequent product allocations on credit. The arrangement is expected to ease working capital pressures while supporting uninterrupted fuel distribution.
3. A minimum purchase of 250,000 litres is mandatory:
The programme targets serious bulk marketers: Participation in the scheme is reserved for bulk buyers. To qualify for free delivery and the accompanying credit facility, marketers must purchase a minimum of 250,000 litres of PMS. This requirement positions the programme for independent marketers, large filling station operators and distributors with sufficient storage and operational capacity. During the initial implementation, Dangote Refinery has limited product lifting to a maximum of five trucks per transaction. The measure is intended to streamline operations, manage product allocation efficiently and ensure orderly distribution as the programme expands across the country.
4. Dedicated support channels have been created for marketers:
The refinery has opened direct communication lines: To facilitate participation, Dangote Refinery has provided dedicated telephone lines and an official email address through which marketers can obtain information, make enquiries and commence the registration process.
The dedicated communication channels are expected to improve response time, simplify engagement with prospective customers and support the smooth implementation of the initiative.
5. More states to benefit in Phase Two:
Nationwide expansion planned: Dangote Refinery said the current rollout is Phase One, with additional states to be announced under Phase Two. The expansion is expected to extend the benefits of the free petrol delivery scheme to more marketers as the refinery broadens its nationwide distribution network.
Market outlook
Dangote Refinery's free petrol delivery scheme represents more than a logistics initiative. It is a strategic effort to strengthen direct distribution, reduce marketers' operating costs and improve nationwide fuel availability.
If implemented successfully, the programme could reshape Nigeria's downstream supply chain by improving delivery efficiency, deepening market competition and giving qualified marketers more flexible access to petrol supplies through lower logistics costs and structured credit support.