Coastal Fuel Distribution Could Push Petrol to N1,000 – Dangote Refinery

Nigeria’s petrol prices may climb close to ₦1,000 per litre if fuel marketers continue to rely heavily on coastal distribution channels, the Dangote Petroleum Refinery has cautioned.

According to the refinery, choices made after production, particularly how refined products are transported across the country, are becoming a major cost driver, with serious implications for consumers and economic stability.

Dangote Refinery said coastal evacuation of petroleum products introduces multiple avoidable charges, including port fees, shipping costs, and maritime levies, which add no real value to end users. 

“Once you stack these costs together, the impact on pump prices becomes inevitable,” a company official said.

Furthermore, the refinery estimated that coastal logistics alone could raise the cost of petrol by about N75 per litre. 

If passed on fully to consumers, the added burden could push retail prices of Premium Motor Spirit dangerously close to the N1,000 threshold.

On a broader scale, the financial implications are even more significant. 

With Nigeria consuming roughly 50 million litres of petrol and 14 million litres of diesel daily, Dangote warned that dependence on sea-based distribution could generate an extra N1.75 trillion in costs annually. 

“This money does not disappear; it is transferred to either producers or ordinary Nigerians,” the source said.

In contrast, the refinery highlighted its alternative evacuation capacity, pointing to its large-scale gantry infrastructure designed for road-based distribution. 

The facility reportedly operates round-the-clock, with 91 loading bays capable of dispatching nearly 2,900 trucks daily.

Dangote Refinery said this system can move over 50 million litres of petrol and 14 million litres of diesel every day, matching national demand without the added expenses linked to marine transport. 

“Gantry loading remains the most efficient and cost-effective option available today,” the company said.

Moreover, the company stressed that direct gantry evacuation eliminates port-related charges and vessel costs, improves delivery speed, and supports price stability across the downstream market.

Beyond immediate logistics concerns, Dangote also called for renewed investment in pipeline infrastructure, warning that weak distribution networks could undermine Nigeria’s long-term goal of affordable and stable energy supply.

Meanwhile, the refinery dismissed claims that it imports finished petroleum products, describing such reports as misleading and inconsistent with its current operations. 

“Our focus remains local refining and efficient domestic distribution,” the company said.

Hence, as fuel pricing pressures persist, the refinery maintained that smarter logistics, not just production volume, will determine whether Nigerians pay more at the pump.