Dangote Warns Coastal Fuel Logistics Could Push Petrol Price to ₦1,000 per Litre

Dangote Warns Coastal Fuel Logistics Could Push Petrol Price to ₦1,000 per Litre

Dangote Petroleum Refinery has raised concerns that Nigeria’s reliance on coastal logistics for transporting petrol (Premium Motor Spirit, PMS) could significantly increase pump prices, potentially pushing them to around ₦1,000 per litre if the added costs are passed on to consumers.

In a statement on Thursday, the refinery emphasized that while fuel marketers can choose their preferred evacuation methods, coastal shipping introduces extra costs—including port charges, vessel fees, and maritime levies—that do not benefit end users. Dangote highlighted that these additional expenses could add roughly ₦75 per litre to the retail price of petrol.

The company stressed that its gantry loading system, which allows trucks to be loaded directly at the refinery’s 91-bay gantry facility, is the most cost-effective and efficient method of distribution. Through this system, tens of millions of litres of petrol and diesel can be dispatched daily without incurring port-related costs, making it cheaper for both marketers and consumers.

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According to Dangote, Nigeria’s current dependence on coastal transport could cost the economy an estimated ₦1.75 trillion annually, based on an average daily consumption of 50 million litres of PMS and 14 million litres of diesel.

The refinery’s warning underscores the importance of efficient fuel distribution systems to maintain affordable petrol prices. Dangote also called for increased investment in pipeline infrastructure and other logistics improvements to reduce reliance on costly coastal transport, ensuring price stability and accessibility for Nigerian motorists.

As Nigeria continues to expand local refining capacity, decisions on fuel evacuation strategies will play a critical role in determining the future of fuel pricing and the overall economic impact of fuel distribution in the country.

Dangote Warns Coastal Fuel Logistics Could Push Petrol Price to ₦1,000 per Litre