Dangote Refinery Warns Coastal Fuel Delivery Could Push Petrol To ₦1,000
Dangote Refinery Flags Cost Risks of Coastal Fuel Delivery
DANGOTE Petroleum Refinery has warned that petrol prices could rise to as high as ₦1,000 per litre if Nigeria continues to rely heavily on coastal delivery of petroleum products.
In a statement issued on Thursday, the refinery said gantry loading remains the most efficient and cost-effective method for evacuating refined products and stabilising pump prices for consumers. It stressed that sustained dependence on coastal logistics adds significant costs that could ultimately be transferred to Nigerians.
The company said its position is backed by massive investments in infrastructure, including a world-class gantry facility with 91 loading bays capable of dispatching up to 2,900 trucks daily. According to the refinery, the gantry operates 24 hours a day and can evacuate more than 50 million litres of premium motor spirit (PMS), 14 million litres of diesel, and other refined products each day.
Dangote Refinery explained that while coastal loading remains an option where logistics demand it, the method comes with added expenses related to shipping, handling, and demurrage. In contrast, gantry evacuation eliminates these extra costs, making it a cheaper and more efficient option.
The company clarified that marketers are not restricted in their choice of evacuation method, noting that PMS and other products are available at competitive prices at its gantry.
It further estimated that continued reliance on coastal delivery could impose an additional annual cost of about ₦1.75 trillion. This estimate is based on Nigeria’s average daily consumption of roughly 50 million litres of petrol and 14 million litres of diesel.
According to the refinery, these costs would either be absorbed by producers or passed on to consumers, with serious implications for fuel affordability nationwide.
