Dangote Refinery Warns: Coastal Fuel Evacuation Could Push Petrol to ₦1,000 per Litre

3 Min Read
  • Dangote Refinery backs gantry loading as the cheapest fuel evacuation method
  • Coastal delivery could add about ₦75 per litre to petrol cost
  • Pipeline investment urged to cut distribution expenses nationwide
  • Import allegations dismissed as false and misleading

Dangote Petroleum Refinery has cautioned fuel marketers and policymakers against relying on coastal evacuation, warning that the logistics option could significantly increase petrol prices and hurt consumers, while renewing calls for massive investment in pipeline infrastructure across Nigeria.

Dangote Petroleum Refinery has reaffirmed its commitment to supplying high-quality petroleum products at affordable prices, urging stakeholders in the downstream sector to adopt logistics options that protect price stability and consumer welfare.

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The refinery said gantry loading remains the most efficient and cost-effective means of evacuating refined products, warning that coastal delivery could unnecessarily inflate fuel prices.

In a statement issued on Wednesday, the refinery disclosed that it has invested heavily in critical infrastructure, including a world-class gantry facility with 91 loading bays capable of dispatching up to 2,900 trucks daily.

Operating round the clock, the facility can evacuate more than 50 million litres of Premium Motor Spirit (PMS), 14 million litres of diesel, and other refined products every day.

According to the refinery, gantry loading eliminates additional costs such as port charges, maritime levies, and vessel-related expenses that do not benefit end users.

“Direct gantry evacuation removes avoidable charges that add no value to consumers. It helps optimise costs, improves distribution efficiency, and supports price stability,” the refinery stated.

The company warned that increased dependence on coastal delivery, especially within Lagos State, could have serious implications for fuel pricing.

“Coastal logistics may add approximately ₦75 per litre to the cost of petrol. If passed on to consumers, this could push the pump price of PMS close to ₦1,000 per litre,” the statement added.

Beyond immediate logistics concerns, the refinery renewed its call for coordinated national investment in pipeline infrastructure, noting that functional pipelines connecting refineries to depots would drastically reduce distribution costs, improve supply reliability, and strengthen Nigeria’s energy security.

The refinery also dismissed claims that it imports finished petroleum products, describing the reports as misleading.

It clarified that while its Residue Fluid Catalytic Cracking Unit is currently undergoing routine maintenance, it only imports intermediate feedstock, a standard global industry practice and not refined fuel.

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