Dangote Refinery has cautioned that reliance on coastal logistics for fuel distribution could significantly raise petrol prices if the associated costs are passed on to consumers.
In a statement posted on its official X account on Thursday, titled “Six Things to Know About Dangote Refinery Fuel Production and Distribution,” the company outlined key aspects of its operations and pricing structure. It disclosed that the refinery operates a high-capacity gantry facility with 91 loading bays, capable of handling up to 2,900 tankers daily and evacuating more than 50 million litres of petrol and 14 million litres of diesel through 24-hour operations.
The company described gantry loading as the most cost-efficient method of fuel evacuation, noting that it eliminates port charges, maritime levies and vessel-related expenses that do not directly benefit end users. According to the refinery, this approach helps maintain more competitive pump prices.
While emphasising that marketers are free to choose between gantry and coastal loading, Dangote Refinery stated that it does not impose restrictions on evacuation modes. However, it warned that coastal logistics could add approximately N75 per litre to the cost of petrol. If transferred to consumers, this could push PMS pump prices close to N1,000 per litre.
The refinery further noted that Nigeria’s average daily consumption stands at about 50 million litres of PMS and 14 million litres of diesel. It estimated that continued reliance on coastal logistics could impose an additional annual burden of roughly N1.752 trillion on the economy.
Highlighting the impact of local refining, the company stated that diesel prices have declined from about N1,700 to between N980 and N990 per litre, while PMS has dropped from around N1,250 to between N839 and N900 per litre. It added that domestic refining has also reduced pressure on foreign exchange and supported naira stability.
