Dangote Refinery has warned that petrol pump prices could approach N1,000 per litre if fuel marketers rely extensively on coastal shipping for product evacuation and transfer the associated costs to consumers.
The refinery raised the concern while explaining its fuel production and distribution framework, noting that although marketers are free to choose their preferred evacuation method, coastal logistics attracts substantial additional charges that could significantly inflate retail prices.
In a statement posted on its official X handle on Thursday titled “Six things to know about Dangote Refinery fuel production and distribution,” the company said its gantry loading system remains the most cost-effective option for moving fuel across the country.
According to the refinery, the facility operates 91 loading bays with the capacity to handle up to 2,900 trucks daily, evacuating more than 50 million litres of petrol and about 14 million litres of diesel through round-the-clock operations.
Dangote Refinery explained that gantry loading avoids costs linked to maritime transportation, including port charges, vessel fees and other levies that ultimately do not benefit end users.
“Gantry loading is identified as the most cost-efficient evacuation method, as it eliminates port charges, maritime levies and vessel-related costs,” the statement said.
While stressing that it does not mandate marketers to use any particular evacuation channel, the refinery cautioned that heavy dependence on coastal shipping could sharply raise fuel prices nationwide.
“Marketers are free to choose between gantry and coastal loading, and the refinery does not impose restrictions on evacuation modes. However, coastal logistics can add about N75 per litre to petrol costs, potentially pushing PMS pump prices close to N1,000 per litre if passed on to consumers,” it added.
Industry analysts note that with petrol currently selling for between N839 and N900 per litre in many parts of the country, an extra N75 per litre could push prices beyond the N1,000 threshold, further burdening households amid rising living costs.
The refinery also highlighted the broader economic implications of widespread coastal evacuation, noting Nigeria’s high daily fuel demand.
It stated that the country consumes an average of about 50 million litres of petrol and 14 million litres of diesel daily, warning that reliance on coastal logistics could result in an additional annual cost of approximately N1.75 trillion.
Dangote Refinery used the opportunity to emphasise the gains of domestic refining, saying local production has helped reduce fuel prices and ease pressure on foreign exchange.
According to the company, diesel prices have fallen from about N1,700 per litre to between N980 and N990, while petrol has dropped from roughly N1,250 per litre to between N839 and N900, alongside improved foreign exchange stability.
Analysts say the refinery’s warning has renewed attention on distribution decisions in the downstream sector, as marketers’ choices could determine whether consumers fully benefit from local refining or face another surge in pump prices nearing N1,000 per litre.
