Petrol Prices May Hit N1,000/Litre Due to Coastal Logistics – Dangote

Dangote Petroleum Refinery has issued a warning that Nigerian fuel prices could approach N1,000 per litre if the country’s reliance on coastline supply of petroleum products is maintained.

The business emphasized that in order to guarantee price consistency for customers, its favored gantry loading technique is still the most effective and economical.

In a statement released on Thursday, the refinery said that ongoing investments in vital infrastructure, such as a “world-class gantry facility” with 91 loading bays that can load up to 2,900 tankers every day, back its viewpoint.

It stated that the facility, which is open around-the-clock, can remove more than 50 million liters of premium motor spirit, 14 million liters of diesel, and other refined goods every day.

The refinery emphasized that gantry evacuation removes extra expenditures, even though it acknowledged that coastline loading is an alternative where logistics demand it.

According to the corporation, “direct gantry evacuation helps to optimize costs, improve distribution efficiency, and support price stability by eliminating port charges, maritime levies, and vessel-related costs that do not add value to end users.”

Additionally, it made it clear that marketers are allowed to select the evacuation method of their choice, with PMS and other enhanced items offered at competitive rack costs.

However, depending too much on coastal delivery—especially within Lagos—may result in needless expenses that have a significant impact on fuel prices, consumer welfare, and general economic well-being. The refinery stated, “We believe that coastal logistics can raise the cost of gasoline by about N75 per litre, which, if passed on to consumers, would push the pump price of PMS close to N1,000 per litre.”

Based on Nigeria’s typical daily consumption of around 50 million liters of PMS and 14 million liters of diesel, the business also calculated that a continued reliance on coastal logistics might result in an additional yearly cost of about N1.75 trillion.

It cautioned that Nigerian consumers or producers will ultimately bear this expense.

Additionally, requests for coordinated national pipeline infrastructure investment were rekindled by the Dangote refinery. It maintained that operational pipelines connecting refineries and depots would boost national energy security, increase supply reliability, and drastically reduce distribution costs.

The refinery called reports that it imports completed petroleum products false.

While we are now performing maintenance on our Residue Fluid Catalytic Cracking Unit, we exclusively import intermediate feedstock in accordance with international industry standards. We urge anyone with solid proof of the importation of a finished product to show it to the relevant regulatory bodies. The refinery restated that such assertions are frequently made by those looking to defend a sustained reliance on fuel imports.

The business outlined the advantages of domestic refining by pointing out that since operations started, PMS prices have decreased from roughly N1,250 per litre to between N839 and N900, while diesel prices have decreased from approximately N1,700 per litre to between N980 and N990.

It also stated that a stronger naira, which is currently trading at roughly N1,385 to the dollar, has been a result of the enhanced local supply, which has significantly decreased gasoline imports and eased demands on foreign exchange.

In closing, the refinery urged legislators, marketers, and regulators to support distribution and logistics choices that safeguard consumers, support national economic interests, and maintain the long-term advantages of domestic refining.