Dangote Petroleum Refinery has issued a warning, stating that Nigerian fuel prices could approach N1,000 per litre if the country continues to rely on coastline supply of petroleum products.
In order to guarantee pricing consistency for customers, the company emphasized that its preferred gantry loading method is still the most economical and efficient.
In a statement 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.
Over 50 million liters of premium motor spirit, 14 million liters of diesel, and other refined goods can be evacuated daily by the plant, which operates around the clock.
The refinery emphasized that gantry evacuation removes extra expenses, even if it acknowledged that coastline loading is an alternative when logistics demand it.
In order to optimize costs, enhance distribution efficiency, and maintain price stability, the company said that direct gantry evacuation removes port fees, maritime levies, and vessel-related expenses that do not provide value to end customers.
Additionally, it made it clear that merchants are allowed to select the evacuation method of their choice, with PMS and other sophisticated products offered at competitive pricing rates.
However, depending too much on coastal delivery—especially inside Lagos—may result in unnecessary expenses that have a significant impact on fuel prices, consumer welfare, and the general state of the economy. The refinery stated, “We believe that coastal logistics can increase the cost of petrol 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 predicted that continued reliance on coastal logistics might result in an additional yearly cost of about N1.75 trillion.
It cautioned that Nigerian consumers or producers would eventually have to pay this expense.
Additionally, the Dangote refinery rekindled calls for coordinated national pipeline infrastructure investment. It maintained that operational pipes connecting refineries and depots would boost national energy security, guarantee supply, and drastically reduce distribution costs.
The refinery called charges that it imports finished petroleum products false.
In accordance with international industry standards, we exclusively import intermediate feedstock when our Residue Fluid Catalytic Cracking Unit is undergoing maintenance. We urge anyone who can provide reliable proof of the importation of a finished product to do so and submit it to the relevant regulatory bodies. The refinery reaffirmed, “Such accusations are frequently made by interests looking to defend ongoing reliance on fuel imports.
The business outlined the advantages of domestic refining by pointing out that since operations started, the price of diesel has decreased from approximately N1,700 per litre to between N980 and N990, while the price of PMS has decreased from approximately N1,250 per litre to between N839 and N900.
Additionally, it 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 fuel importation and eased demands on foreign exchange.
In closing, the refinery urged legislators, regulators, and marketers to support distribution and logistics choices that safeguard consumers, promote national economic interests, and maintain the long-term advantages of domestic refining.
