Dangote Petroleum Refinery has warned that Nigeria’s continued reliance on coastal delivery of petroleum products could drive petrol prices close to N1,000 per litre, urging marketers to embrace gantry loading as a more efficient and cost-saving alternative.
In a statement on Thursday, the refinery said gantry evacuation remains the most reliable method for maintaining price stability, citing its heavy investment in infrastructure, including a world-class gantry facility with 91 loading bays capable of handling up to 2,900 tankers daily.
Operating round the clock, the facility can evacuate more than 50 million litres of premium motor spirit (PMS), 14 million litres of diesel, and other refined products every day.
While acknowledging that coastal loading may be necessary in some cases, the company stressed that direct gantry evacuation eliminates avoidable costs such as port charges, maritime levies, and vessel-related expenses that ultimately raise pump prices.
According to the refinery, coastal logistics could add about N75 per litre to the cost of petrol, a margin that could push PMS prices close to N1,000 per litre if passed on to consumers, particularly within Lagos.
Dangote Refinery further estimated that sustained dependence on coastal delivery could impose an extra annual cost of about N1.75 trillion, based on Nigeria’s average daily consumption of roughly 50 million litres of PMS and 14 million litres of diesel. It warned that such costs would eventually be borne by producers or Nigerian consumers.
The company also renewed its call for coordinated national investment in pipeline infrastructure, arguing that functional pipelines linking refineries to depots would significantly reduce distribution costs, improve supply reliability, and strengthen energy security.
Responding to claims that it imports finished petroleum products, the refinery dismissed the allegations as misleading, explaining that it only imports intermediate feedstock during maintenance of its Residue Fluid Catalytic Cracking Unit, in line with global industry practice.
Highlighting the gains of domestic refining, Dangote said diesel prices have dropped from about N1,700 per litre to between N980 and N990, while PMS prices have fallen from around N1,250 per litre to between N839 and N900 since production began.
It added that increased local supply has sharply reduced fuel imports, eased pressure on foreign exchange, and contributed to a stronger naira, recently trading at about N1,385 to the dollar.
The refinery urged marketers, regulators and policymakers to support logistics decisions that protect consumers, strengthen the economy, and sustain the long-term benefits of domestic refining.
