The Dangote Petroleum Refinery has cautioned that Nigeria’s growing dependence on coastal transportation for moving petroleum products could drive the pump price of petrol to nearly ₦1,000 per litre.
In a statement released on Thursday, the company warned that although petroleum marketers are free to determine their preferred distribution channels, heavy reliance on coastal delivery comes with significant cost implications that could ultimately hurt consumers and destabilize the energy market.
According to the refinery, transporting fuel through coastal routes could add as much as ₦75 to the cost of each litre of petrol. If that additional expense is transferred to buyers, petrol prices could climb dangerously close to the ₦1,000 mark.
“With Nigeria consuming roughly 50 million litres of petrol and about 14 million litres of diesel every day, the cumulative effect of coastal logistics is enormous,” the company noted.
Dangote’s Estimate
Dangote estimated that this approach could generate an extra ₦1.752 trillion in costs annually, a burden that would eventually be absorbed by either fuel producers or end users.
The refinery pointed to its own extensive logistics infrastructure as a more cost-effective alternative. It said its gantry system—equipped with 91 loading bays—can load up to 2,900 trucks daily and operate continuously throughout the day.
Running 24 hours a day, the facility is capable of evacuating more than 50 million litres of petrol and 14 million litres of diesel daily, making gantry loading the most efficient and economical distribution method, according to the company.
Dangote explained that direct loading from the gantry removes several avoidable expenses, including port charges, maritime levies, and vessel-related costs that do not add value for consumers.
Eliminating these charges, it said, would help keep fuel prices stable while improving supply efficiency nationwide.
Call For Investment
The company also renewed its call for strategic investment in pipeline infrastructure, warning that poor delivery systems could undermine efforts to achieve affordable energy pricing and a stable petroleum market in Nigeria.
Addressing recent claims that it imports finished petroleum products, the refinery dismissed the reports as inaccurate and misleading.
It clarified that it only brings in intermediate feedstock, which is standard practice in the global refining industry, while its residue fluid catalytic cracking unit undergoes routine maintenance.
“We do not import finished products,” the company said, challenging anyone with evidence to present it to the appropriate regulatory bodies. It added that such allegations appear to be driven by vested interests.
Since commencing operations, Dangote said its output has helped push down fuel prices across the market. Diesel prices, which once hovered around ₦1,700 per litre, have fallen to about ₦1,100 and now trade between ₦980 and ₦990. Petrol prices have also declined, dropping from roughly ₦1,250 per litre to a range of ₦839 to ₦900.
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The refinery further noted that increased local fuel supply has eased pressure on foreign exchange demand and contributed to improved market stability. It added that the naira is currently exchanging at approximately ₦1,385 to the U.S. dollar.