Dangote Hints of N1,000/litre Petrol as Coastal Logistics Costs Soar
Dangote Petroleum Refinery has warned that continued reliance on coastal delivery of petroleum products could push petrol prices close to N1,000 per litre in Nigeria.
The company stressed that its preferred gantry loading remains the most efficient and cost-effective method to ensure price stability for consumers.
The refinery, in a statement on Thursday, explained that its position is supported by sustained investments in critical infrastructure, including a “world-class gantry facility” with 91 loading bays capable of loading up to 2,900 tankers daily.
Operating on a 24-hour basis, it said the facility can evacuate over 50 million litres of premium motor spirit, 14 million litres of diesel, and other refined products each day.
While acknowledging that coastal loading is an option where logistics require, the refinery emphasised that gantry evacuation eliminates additional costs.
“Direct gantry evacuation eliminates port charges, maritime levies and vessel-related costs that do not add value to end users, helping to optimise costs, improve distribution efficiency and support price stability,” the company stated.
It also clarified that marketers are free to choose their preferred mode of evacuation, with PMS and other refined products available at competitive gantry prices.
“However, reliance on coastal delivery, particularly within Lagos, may introduce avoidable costs with material implications for fuel pricing, consumer welfare, and overall economic well-being. In our opinion, coastal logistics can add approximately N75 per litre to the cost of petrol, which, if passed on to consumers, would push the pump price of PMS close to N1,000 per litre,” the refinery said.
The company further estimated that sustained dependence on coastal logistics could impose an additional annual cost of roughly N1.75tn, based on Nigeria’s average daily consumption of about 50 million litres of PMS and 14 million litres of diesel.
It warned that this cost would ultimately be borne by producers or Nigerian consumers.
Dangote refinery also renewed calls for coordinated investment in pipeline infrastructure nationwide. It argued that functional pipelines linking refineries to depots would significantly cut distribution costs, improve supply reliability, and strengthen national energy security.
Addressing allegations that it imports finished petroleum products, the refinery described such claims as misleading.
“While our Residue Fluid Catalytic Cracking Unit is currently undergoing maintenance, we only import intermediate feedstock in line with global industry practice. We challenge anyone with credible evidence of finished product importation to present it to the appropriate regulatory authorities. Such claims are often driven by interests seeking to justify continued dependence on fuel imports,” the refinery reiterated.
Explaining the benefits of domestic refining, the company noted that since operations began, diesel prices have fallen from about N1,700 per litre to between N980 and N990, while PMS prices have dropped from around N1,250 per litre to between N839 and N900.
It added that increased local supply has sharply reduced fuel importation, eased foreign exchange pressures, and contributed to a stronger naira, recently trading at about N1,385 to the dollar.
The refinery concluded by urging marketers, regulators, and policymakers to support logistics and distribution decisions that align with national economic interests, protect consumers, and sustain the long-term benefits of domestic refining.