- Why Petrol Price May Hit ₦1,000 Per Litre – Dangote Refinery
- Refinery says gantry evacuation cuts costs and improves fuel price stability.
- Company denies importing finished fuel, cites lower diesel and petrol prices.
The management of the Dangote Petroleum Refinery has warned that Nigeria’s continued reliance on coastal logistics for the distribution of petroleum products could drive the pump price of petrol close to ₦1,000 per litre.
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EKO HOT BLOG reports that in a statement issued on Thursday, the refinery said while oil marketers are free to determine how they evacuate products, excessive dependence on coastal delivery channels could introduce avoidable costs with serious implications for fuel pricing, consumer welfare and overall economic stability.
According to the company, coastal logistics could add about ₦75 per litre to the cost of petrol. It noted that passing such costs to consumers would push the pump price of Premium Motor Spirit close to the ₦1,000 mark.
Dangote estimated that with Nigeria’s average daily consumption of about 50 million litres of petrol and 14 million litres of diesel, continued reliance on coastal evacuation could impose an additional annual cost of roughly ₦1.752 trillion. The refinery said this burden would ultimately be borne by either producers or consumers.
The company highlighted its in house infrastructure, noting that the refinery operates a gantry facility with 91 loading bays capable of dispatching up to 2,900 tankers daily on a 24 hour basis. It said the facility can evacuate more than 50 million litres of petrol and 14 million litres of diesel daily.
Dangote described gantry loading as the most efficient and cost effective evacuation method, explaining that it eliminates port charges, maritime levies and vessel related costs that do not add value to end users.
The refinery also called for coordinated investments in pipeline infrastructure, warning that inefficient delivery systems could undermine Nigeria’s drive towards affordable energy and market stability.
Responding to claims that it imports finished petroleum products, the company dismissed the allegations as misleading. It clarified that it only imports intermediate feedstock due to maintenance on its residue fluid catalytic cracking unit, in line with global industry practice.
Dangote added that since operations began, diesel prices have fallen from about ₦1,700 per litre to between ₦980 and ₦990, while petrol pric
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