The Dangote Petroleum Refinery has expanded its free petrol delivery programme to 10 states and the Federal Capital Territory, offering fuel marketers cheaper access to locally refined Premium Motor Spirit (PMS). The latest expansion comes after the refinery reduced its petrol ex-depot price to ₦1,165 per litre, down from ₦1,215, as part of efforts to make petroleum products more affordable and strengthen distribution across Nigeria. The ₦50 reduction took effect on August 6, 2026.
States Covered Under the Expanded Free Delivery Scheme
The expanded programme covers the following locations: Lagos State, Ogun State, Rivers State, Kaduna State, Delta State, Kano State, Imo State, Anambra State, Nasarawa State, and the Federal Capital Territory, Abuja. The inclusion of states across the South-West, South-South, South-East, North-West and North-Central regions represents a significant widening of the refinery’s direct-distribution strategy. The scheme initially covered six locations: Lagos, Ogun, Rivers, Kaduna, Delta and Abuja. Dangote had indicated that additional states would be added as the programme progressed.
Eligibility Criteria for Bulk Fuel Buyers
The offer is targeted at bulk fuel buyers rather than motorists purchasing petrol directly. Eligible marketers must purchase a minimum of 250,000 litres to qualify for the arrangement. In addition to free transportation, qualifying customers are offered a 10-day credit facility, giving marketers additional time to settle their obligations after taking delivery. The arrangement is expected to ease the financial pressure on fuel distributors, particularly those operating far from the refinery in Lagos. Transportation and logistics expenses have historically been major contributors to differences in petrol prices across Nigerian states.
Potential Impact on Petrol Prices and Market Competition
The development could intensify competition among fuel suppliers and depots, especially as Dangote Refinery continues to lower its product prices. The refinery’s latest ₦50 reduction brought petrol to ₦1,165 per litre, while diesel was reduced by ₦80 to ₦1,570 per litre. The company said the changes were aimed at improving energy affordability, expanding access to refined products and supporting economic activity. For consumers, however, the final pump price will still depend on the marketer, location, operating costs and prevailing market conditions. Free delivery at the bulk-purchase level does not automatically mean every filling station in the affected states will sell petrol at the same price. Still, the expansion marks another major shift in Nigeria’s downstream petroleum market as Dangote Refinery seeks to move more locally refined petrol directly to marketers while cutting the costs associated with distribution.
According to industry data published in the Major Energies Marketers Association of Nigeria (MEMAN)'s latest Energy Bulletin, the spot landing cost of Premium Motor Spirit (PMS) reached N1,218.54 per litre as of August 13, indicating that the cost of importing petrol from abroad has climbed above what Dangote Refinery charges for the same product, widening the price advantage for locally refined fuel.
