Coastal Logistics May Push PMS Near N1,000/litre, Dangote Refinery Warns

Dangote Refinery has outlined its fuel production and distribution operations, warning that reliance on coastal logistics could significantly increase petrol prices if the additional costs are transferred to consumers.

In a statement on its official X account on Thursday titled “Six things to know about Dangote Refinery fuel production and distribution”, the company said its refinery operates a world-class gantry facility with 91 loading bays, capable of handling up to 2,900 tankers daily and evacuating over 50 million litres of petrol and 14 million litres of diesel through continuous 24-hour operations.

Dangote noted that gantry loading, which it described as the most cost-efficient evacuation method, helps eliminate port charges, maritime levies, and vessel-related expenses that do not benefit end users.

The firm said, “Gantry loading is identified as the most cost-efficient evacuation method, as it eliminates port charges, maritime levies and vessel-related costs that do not benefit end users.”

The refinery also emphasised that marketers are free to choose between gantry and coastal loading, adding that the company does not impose restrictions on evacuation modes. However, it warned that coastal logistics could add about N75 per litre to petrol costs, potentially pushing pump prices close to N1,000 per litre if passed on to consumers.

“Marketers are free to choose between gantry and coastal loading, and the refinery does not impose restrictions on evacuation modes. Coastal logistics can add about N75 per litre to petrol costs, potentially pushing PMS pump prices close to N1,000 per litre if passed on to consumers,” it said.

Dangote Refinery added that Nigeria’s daily consumption averages “about 50 million litres of PMS and 14 million litres of diesel,” noting that reliance on coastal logistics could impose “an additional annual cost of approximately N1.752 trillion.”

Highlighting the impact of local refining, the firm said, “Local refining has significantly reduced fuel prices, with diesel falling from about N1,700 to N980–N990 per litre, and PMS dropping from around N1,250 to N839–N900 per litre, while also easing FX pressure and supporting naira stability.”