Petrol Prices Could Hit ₦1,000 on Coastal Shipping – Dangote

Dangote Petroleum Refinery has raised concerns that continued reliance on coastal shipment of petroleum products could drive petrol prices in Nigeria toward N1,000 per litre. The company emphasized that its gantry loading system remains the most cost-efficient method to ensure stable fuel prices.

In a statement on Thursday, Dangote highlighted its modern gantry facility, which features 91 loading bays and can handle up to 2,900 tankers daily. Operating 24/7, the facility can evacuate more than 50 million litres of premium motor spirit (PMS), 14 million litres of diesel, and other refined products each day.

While coastal delivery remains an alternative when required, Dangote noted that direct gantry loading avoids port fees, maritime levies, and vessel-related costs, making distribution cheaper and more efficient. The company warned that relying heavily on coastal logistics—especially in Lagos—could increase petrol prices by about N75 per litre, potentially pushing retail costs toward N1,000.

Dangote also estimated that sustained dependence on coastal shipping could add roughly N1.75 trillion annually to distribution costs, which would ultimately be passed on to consumers. The refinery called for coordinated investment in pipeline infrastructure to reduce costs, improve supply reliability, and strengthen energy security.

Addressing claims of importing finished petroleum products, Dangote clarified that only intermediate feedstock is imported for maintenance purposes, in line with global industry practices. Domestic refining, the company said, has lowered diesel prices from roughly N1,700 per litre to between N980 and N990, while PMS dropped from N1,250 to between N839 and N900.

The refinery concluded by urging policymakers, regulators, and marketers to prioritize logistics strategies that protect consumers and sustain the benefits of local refining.