By Ayomide Otitoju
Dangote Petroleum Refinery has cautioned that continued reliance on coastal delivery of petroleum products could drive petrol prices in Nigeria close to N1,000 per litre.
In a statement on Thursday, the company stressed that its preferred gantry loading system remains the most efficient and cost-effective method for ensuring price stability for consumers. The refinery highlighted its “world-class gantry facility” with 91 loading bays, capable of loading up to 2,900 tankers daily. Operating 24 hours a day, the facility can evacuate over 50 million litres of petrol, 14 million litres of diesel, and other refined products each day.
While acknowledging that coastal loading is sometimes necessary, Dangote Refinery said gantry evacuation avoids additional costs such as port charges, maritime levies, and vessel-related fees, which can inflate consumer prices. The company estimated that reliance on coastal logistics, particularly in Lagos, could add around N75 per litre to petrol costs, potentially pushing pump prices close to N1,000 per litre.
Sustained dependence on coastal deliveries, the refinery noted, could cost roughly N1.75 trillion annually, based on Nigeria’s average daily consumption of about 50 million litres of petrol and 14 million litres of diesel. These costs would ultimately fall on producers or consumers.
Dangote Refinery also renewed calls for increased investment in nationwide pipeline infrastructure, arguing that functional pipelines linking refineries to depots would cut distribution costs, improve supply reliability, and enhance national energy security.
Responding to claims that it imports finished petroleum products, the refinery described such allegations as misleading. It clarified that while its Residue Fluid Catalytic Cracking Unit is under maintenance, only intermediate feedstock is imported, in line with global industry practice.
The company highlighted the benefits of domestic refining, noting that diesel prices have fallen from about N1,700 per litre to between N980 and N990, while petrol prices have dropped from around N1,250 to between N839 and N900. Increased local supply has also reduced fuel importation, eased foreign exchange pressures, and contributed to a stronger naira.
Dangote Refinery urged marketers, regulators, and policymakers to support logistics and distribution decisions that align with national economic interests, protect consumers, and sustain the long-term benefits of domestic refining.
