The Dangote Petroleum Refinery and Petrochemicals FZE has announced plans to reduce regional petrol price differences across Nigeria by subsidising part of the transportation costs from its Lekki facility to distant markets. The company is deploying additional trucks to make petrol prices more uniform, particularly in northern states where logistics expenses have driven up pump prices.
Dangote to Subsidise Petrol Transportation Costs
Edwin Devakumar, Vice President of Dangote Petroleum Refinery, disclosed the initiative during a media engagement with senior editors at the refinery complex on Friday. He said the company was deploying more trucks and subsidising transportation costs to ensure motorists do not face significant price variations based solely on their location.
According to Devakumar, the initiative aims to expand the distribution of Dangote petrol nationwide while reducing the financial burden of transporting the product over long distances. The company wants petrol prices to be broadly similar in locations such as Sokoto, Kano, and Calabar.
“We are now actually trying to equalise the price, whether you want to buy in Sokoto, whether you want to buy in Kano or buy in Calabar. The price should be the same,” Devakumar said. “That is why we brought all these trucks, so we can even subsidise the transport and ensure that there is a uniform price and distribution throughout the country.”
Company Targets Wider Nationwide Distribution
Devakumar said the impact of the initiative was already becoming noticeable, adding that Dangote Refinery would continue working to extend its reach to more parts of Nigeria. Addressing transportation expenses is central to the company's strategy of making its products more accessible across the country.
“One thing is, we are even trying to make it further impact by taking the products all over the country and solving the transportation cost,” he said. The executive also maintained that petrol prices in Nigeria remained relatively low compared with those in some neighbouring countries, pointing to price differences along the West African coast amid current challenges affecting fuel markets in the region.
Transport Costs Drive Regional Petrol Price Gaps
The Dangote executive's comments highlight transportation as one of the major factors contributing to differences in petrol prices between regions. With the refinery located in Lekki, moving petrol to distant markets in northern Nigeria can add significant logistics costs to the final pump price.
By subsidising part of those expenses and increasing the number of trucks available for distribution, Dangote Refinery is seeking to narrow the price gap and make its petrol available more uniformly across the country. The company's efforts are expected to continue as it works to extend its distribution network nationwide.
