The Dangote Petroleum Refinery has warned that continued reliance on coastal logistics for fuel distribution could push petrol pump prices close to ₦1,000 per litre.
In a statement on Thursday, the refinery explained that coastal logistics — the transportation of petroleum products by sea rather than through pipelines or direct land evacuation — adds significant and avoidable costs to fuel distribution.
While noting that marketers are free to choose their preferred evacuation methods, the refinery cautioned that sustained dependence on coastal delivery could impose an additional cost of about ₦1.75 trillion annually on the economy.
“Reliance on coastal delivery, particularly within Lagos, may introduce avoidable costs with material implications for fuel pricing, consumer welfare and overall economic wellbeing,” the company said.
According to the refinery, coastal logistics could add roughly ₦75 per litre to the cost of petrol, which, if passed on to consumers, would push the pump price of Premium Motor Spirit (PMS) close to ₦1,000 per litre.
Based on Nigeria’s average daily consumption of about 50 million litres of petrol and 14 million litres of diesel, the refinery estimated that the extra logistics cost would total approximately ₦1.752 trillion annually, a burden that would ultimately be borne by producers or consumers.
Reaffirming its commitment to affordable, high-quality petroleum products, Dangote Refinery urged marketers and policymakers to adopt more cost-effective logistics options that support price stability and protect consumers.
The company highlighted its investment in infrastructure, including a world-class gantry facility with 91 loading bays capable of dispatching up to 2,900 tankers daily. Operating кругл the clock, the facility can evacuate over 50 million litres of PMS, 14 million litres of diesel, and other refined products each day.
“While the refinery remains open to coastal loading where logistics make it necessary, gantry loading remains the most economically efficient and operationally effective option,” the statement noted.
The refinery added that direct gantry evacuation eliminates port charges, maritime levies, and vessel-related costs that do not add value to end users, thereby reducing costs and improving distribution efficiency. It also renewed calls for coordinated nationwide investment in pipeline infrastructure.
Addressing claims that it imports finished petroleum products, the refinery dismissed the allegations as misleading, clarifying that it only imports intermediate feedstock due to ongoing maintenance on its residue fluid catalytic cracking unit, in line with global industry practice.
It challenged anyone with evidence of finished-product imports to present it to relevant regulatory authorities, describing such claims as attempts to justify continued fuel importation.
The refinery further noted that since it began operations, diesel prices have dropped from about ₦1,700 per litre to around ₦980–₦990, while PMS prices have fallen from about ₦1,250 per litre to between ₦839 and ₦900.
According to the company, increased domestic fuel supply has reduced imports, eased foreign exchange pressure, improved market stability, and supported a stronger naira, currently trading at about ₦1,385 to the dollar.
