Dangote Refinery Reveals Why Petrol Price May Increase To ₦1000 Per Litre
The management of the Dangote Petroleum Refinery has warned that Nigeria’s heavy reliance on coastal logistics to distribute petroleum products may push the pump price of petrol close to ₦1,000 per litre.
In a statement issued on Thursday, the refinery explained that while marketers are free to choose how they evacuate products, depending on coastal delivery could lead to avoidable expenses with serious implications for fuel pricing, consumer welfare, and economic stability.
“In our opinion, coastal logistics can add approximately N75 per litre to the cost of petrol, which, if passed on to consumers, would push the pump price of PMS close to ₦1,000 per litre,” the company stated.
The company estimated that with Nigeria’s average daily consumption of about 50 million litres of petrol and 14 million litres of diesel, continued dependence on coastal logistics could result in an additional annual cost of ₦1.752 trillion.
“This cost would ultimately be passed on to either producers or consumers,” the statement noted.
Highlighting its own infrastructure, Dangote said its refinery includes a world-class gantry facility with 91 loading bays, capable of dispatching up to 2,900 tankers daily on a 24-hour basis.
“Operating round-the-clock, the facility can evacuate over 50 million litres of PMS and 14 million litres of diesel daily,” it said.
The company stressed that gantry loading remains the most economically viable and operationally efficient evacuation method.
It added, “Direct gantry evacuation eliminates port charges, maritime levies, and vessel-related costs that add no value to end users. It helps reduce cost, improves distribution efficiency, and supports price stability.”
Dangote also reiterated the need for coordinated investments in pipeline infrastructure, warning that inefficient delivery mechanisms could derail the country’s push toward energy affordability and market stability.
Responding to recent claims that it imports finished petroleum products, the company dismissed such allegations as misleading.
It stated, “We do not import finished products. Our residue fluid catalytic cracking unit is currently undergoing maintenance, and we only import intermediate feedstock in line with global industry practice.
“We challenge anyone with credible evidence of finished-product imports to present it to the relevant regulatory authorities,” it added, suggesting such claims are driven by vested interests.”
Since the refinery began operations, it said, prices of diesel and petrol have dropped significantly.
“Diesel has fallen from about ₦1,700 per litre to ₦1,100, and currently trades between ₦980 and ₦990. Similarly, PMS prices have declined from ₦1,250 to between ₦839 and ₦900 per litre,” the company said.
The refinery also credited increased domestic fuel supply for easing foreign exchange pressure and boosting market stability, noting that the naira currently trades at around ₦1,385 to the dollar.
