Dangote: Coastal evacuation may add N75 per litre to petrol cost

Dangote Petroleum Refinery has reiterated its commitment to supplying affordable, high-quality petroleum products, urging marketers and policymakers to adopt distribution methods that help keep fuel prices stable and protect consumers.

The refinery said it has invested heavily in infrastructure to support efficient product evacuation, including a gantry loading facility with 91 loading bays capable of handling up to 2,900 tankers daily.

Operating round the clock, the facility can dispatch more than 50 million litres of Premium Motor Spirit (PMS), 14 million litres of diesel and other refined products each day.

While noting that it remains open to coastal loading when necessary, the company maintained that gantry loading is the most cost-effective and operationally efficient option. It explained that direct gantry evacuation removes additional expenses such as port charges, maritime levies and vessel-related costs, which could ultimately be passed on to consumers.

Dangote Refinery stressed that marketers are free to choose their preferred evacuation method but warned that relying on coastal delivery, especially within Lagos, may inflate fuel prices. According to the refinery, coastal logistics could add about N75 per litre to the cost of petrol, potentially pushing pump prices close to N1,000 per litre.

Using Nigeria’s estimated daily consumption of 50 million litres of petrol and 14 million litres of diesel, the refinery projected that heavy dependence on coastal transport could result in an extra annual cost of about N1.75 trillion, a burden that would likely fall on consumers or suppliers.

The company also called for increased investment in pipeline infrastructure nationwide, saying functional pipelines linking refineries to depots would significantly lower distribution costs, enhance supply reliability and strengthen energy security.

Responding to allegations that it imports finished petroleum products, the refinery dismissed the claims as misleading. It clarified that while its Residue Fluid Catalytic Cracking Unit is undergoing maintenance, it only imports intermediate feedstock in line with global industry practices, not refined fuels. It challenged anyone with evidence of finished product imports to present it to regulators.

Dangote Refinery said local refining has already begun to yield economic benefits. It noted that diesel prices have dropped from about N1,700 per litre to between N980 and N1,100, while PMS prices have declined from roughly N1,250 per litre to between N839 and N900.

According to the company, increased domestic supply has reduced fuel imports, eased pressure on foreign exchange and contributed to improved market stability and a stronger naira.

The refinery reaffirmed its commitment to efficiency, transparency and price stability, urging stakeholders to adopt logistics strategies that serve national economic interests and protect consumers.