Dangote Petroleum Refinery has warned that Nigeria’s continued reliance on coastal distribution of petroleum products could drive petrol prices close to N1,000 per litre, raising fuel costs for consumers and putting pressure on the wider economy.
According to the refinery, gantry loading remains the most efficient, cost-effective, and sustainable fuel distribution method for ensuring price stability in Nigeria’s downstream petroleum sector.
In a statement issued on Thursday, Dangote Refinery said its position is backed by significant investments in logistics infrastructure, including a world-class gantry loading facility with 91 loading bays, capable of dispatching up to 2,900 fuel tankers daily.
Operating 24 hours a day, the facility can evacuate over 50 million litres of Premium Motor Spirit (PMS), 14 million litres of diesel, and other refined petroleum products daily, significantly improving fuel supply efficiency across the country.
While acknowledging that coastal shipping may be necessary in certain logistics scenarios, the refinery stressed that direct gantry evacuation eliminates avoidable costs associated with marine transportation.
“Direct gantry evacuation removes port charges, maritime levies, and vessel-related expenses that do not add value to end users. This helps optimise costs, enhance distribution efficiency, and support fuel price stability,” the company stated.
Dangote Refinery also clarified that petroleum marketers are free to choose their preferred mode of product evacuation, noting that PMS, diesel, and other refined products are available at competitive gantry prices.
However, it warned that heavy reliance on coastal fuel delivery—especially within Lagos—introduces avoidable logistics costs with serious implications for fuel pricing, consumer welfare, and Nigeria’s economic well-being.
“In our assessment, coastal logistics can add approximately N75 per litre to the cost of petrol. If passed on to consumers, this 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 distribution could impose an additional N1.75 trillion annual cost, based on Nigeria’s average daily consumption of 50 million litres of PMS and 14 million litres of diesel. It noted that these costs would ultimately be borne by producers or Nigerian consumers.
Dangote Refinery renewed its call for coordinated nationwide investment in pipeline infrastructure, arguing that functional pipelines linking refineries to depots would reduce fuel distribution costs, improve supply reliability, and strengthen national energy security.
Addressing allegations that it imports finished petroleum products, the refinery described the 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. Anyone with credible evidence of finished product importation should present it to the relevant regulatory authorities,” the company said, adding that such claims are often driven by interests seeking to sustain fuel import dependence.
Highlighting the benefits of domestic refining, Dangote Refinery noted that since operations began, diesel prices have dropped from about N1,700 per litre to between N980 and N990, while petrol prices have declined from around N1,250 per litre to between N839 and N900.
The refinery added that increased local refining capacity has significantly reduced fuel imports, eased pressure on foreign exchange, and supported a stronger naira, recently trading at approximately N1,385 to the dollar.
The company concluded by urging marketers, regulators, and policymakers to support logistics and distribution strategies that align with Nigeria’s national economic interests, protect consumers, and sustain the long-term benefits of local petroleum refining.
