Dangote Petroleum Refinery has raised the alarm that continued reliance on coastal logistics to move petrol around Nigeria could significantly increase pump prices.
The refinery warned that the added costs could be passed on to consumers, potentially driving the price of Petrol close to ₦1,000 per litre.
In a statement issued Thursday on its official X handle, the refinery said coastal shipping carries extra costs that do not benefit end users.”
These include port charges, maritime levies and other vessel-related expenses.
According to the company, coastal logistics could add approximately ₦75 per litre to the cost of petrol. If wholesalers and retailers pass these additional costs on to motorists, pump prices for petrol could near ₦1,000 per litre, a significant jump from current retail levels.
The refinery explained that its gantry loading system remains the most cost-efficient method of evacuation.
With 91 loading bays capable of handling up to 2,900 tankers daily, the facility can dispatch over 50 million litres of petrol and 14 million litres of diesel every day through its Lagos operations without the layers of expense tied to marine transport.
Dangote Petroleum Refinery also highlighted the broader implications of heavy dependence on coastal logistics.
Based on Nigeria’s estimated average daily consumption of fuel, the company says reliance on maritime distribution could result in an additional annual cost of roughly ₦1.75 trillion, a burden that would ultimately fall on producers or consumers.
While noting that fuel marketers are free to choose their preferred evacuation methods, Dangote stressed that prioritising efficient infrastructure, such as pipelines and direct gantry loading, could reduce distribution costs and improve supply reliability.
The company added that adopting these options would help keep fuel prices stable, especially at a time when households are already feeling the strain of rising living expenses.
Nigeria’s petrol market has undergone significant change since the Dangote Refinery began operations, reducing dependence on imported fuel and easing pressure on foreign exchange.
Local refining has helped moderate prices, with PMS reportedly trading between around ₦839 and ₦900 per litre in many parts of the country.
However, the refinery’s warning underscores that logistics and distribution remain key challenges.
Fuel transportation choices by marketers could determine whether Nigerians benefit from the cost advantages of domestic refining or face another round of price increases that push petrol toward the ₦1,000 per litre mark.
