Marketers say initiative will ease cash-flow pressures, reduce logistics risks and help moderate pump prices
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has praised Dangote Petroleum Refinery for expanding its free petrol distribution initiative to Imo, Anambra and other states, describing the move as a major relief for independent petroleum marketers and consumers.
The association said the initiative could help address some of the persistent financial and logistical difficulties confronting marketers, particularly the challenge of paying for petroleum products upfront and waiting several days or weeks before taking delivery.
National Publicity Secretary and Public Relations Officer of IPMAN, Chinedu Ukadike, said the scheme was already making it easier for independent marketers to access products while reducing the amount of money tied up in the supply chain.
“This gesture, if sustained, will be able to alleviate the sufferings of independent marketers,” Ukadike said.
He explained that marketers had historically faced significant financial pressure when payments were made in advance but products were not loaded promptly.
“There has been the issue of financial hold-up, whereby marketers pay for products and are not loaded for days and weeks, and they suffer unnecessary hardship bringing the product down,” he said.
According to him, Dangote Refinery's intervention had changed the situation considerably by making product access faster and more predictable for independent operators.
“This time around, Dangote has made it very, very easy for marketers. Marketers are jubilating, and you will see the return on investment as an independent marketer. Your money will not be tied down,” Ukadike said.
Lower logistics burden
Beyond the immediate financial relief, IPMAN said the distribution initiative could reduce the risks and expenses associated with transporting petrol over long distances.
Ukadike noted that allowing marketers to obtain products closer to their areas of operation would reduce the pressure associated with long-distance transportation, while also improving their ability to maintain steady supplies to filling stations.
“You also have less risk, and you have petroleum products at your doorstep,” he said.
He argued that the benefits could eventually extend to motorists and other consumers if savings from distribution and logistics were reflected in retail prices.
“Other consumers will also see that our pump price will not continue to go up. The more Dangote brings down its pump price, the more independent marketers will bring down theirs,” he said.
The development comes amid continued concerns over petrol prices and the cost of moving petroleum products across Nigeria. For independent marketers, transportation, financing and product availability remain important factors in determining the final price of petrol at filling stations.
IPMAN therefore urged Dangote Refinery to broaden the initiative beyond the states currently covered, with particular emphasis on northern Nigeria.
Appeal for northern expansion
Ukadike said a wider rollout would help create greater uniformity in the distribution and pricing of petroleum products across the country while reducing some of the hardship associated with fuel transportation.
“We want to commend the management of Dangote Refinery for making this possible, and we are also appealing to them to extend it further to other states, especially those in the northern areas, so that petroleum products will be bought uniformly. This will reduce the hardship Nigeria is facing,” he said.
He described the initiative as an indication of what could be achieved through competition and deregulation in the downstream petroleum sector.
“This is the beauty of deregulation and competition,” Ukadike said.
Competition and consumer relief
Dangote Refinery has been extending its free petrol distribution initiative across several states as part of efforts aimed at reducing the effect of fuel-price fluctuations and transportation expenses on consumers.
The expansion to Imo and Anambra has received a positive response from independent petroleum marketers, who believe that extending the scheme to more parts of the country could further improve product availability and reduce distribution bottlenecks.
For IPMAN, the broader objective is not only to make petrol more accessible to marketers but also to create conditions in which lower supply and logistics costs can translate into more stable pump prices for consumers.
The association's call for further expansion, particularly into northern states, reflects its position that wider geographical coverage would strengthen the benefits of the initiative and help narrow disparities in the cost of petroleum products across different parts of Nigeria.
As the downstream sector continues to adjust to deregulation and increased domestic refining capacity, marketers say initiatives that improve access to locally refined products, reduce financing delays and cut transportation risks could play an important role in easing pressure on both businesses and consumers.