KEY POINTS
- Dangote Refinery warns petrol could near N1,000 per litre if marketers rely on coastal shipping and pass costs to consumers.
- Gantry loading is the cheapest evacuation option, while coastal logistics could add about N75 per litre.
- Local refining has already reduced diesel and petrol prices and eased pressure on foreign exchange.
Dangote Refinery has cautioned that petrol prices in Nigeria could rise close to N1,000 per litre if fuel marketers rely heavily on coastal shipping for product evacuation and transfer the associated costs to consumers.
The refinery issued the warning while explaining its fuel production and distribution operations, stressing that although marketers are free to select their preferred evacuation method, coastal logistics attract substantial additional charges that can significantly inflate pump prices.
The clarification was contained in a statement posted on the company’s official X account on Thursday under the title, “Six things to know about Dangote Refinery fuel production and distribution.”
Gantry loading identified as cheapest option
According to the refinery, gantry loading remains the most cost-effective means of evacuating fuel from its facility, as it avoids numerous expenses tied to maritime transportation.
Dangote Refinery said its world-class gantry system comprises 91 loading bays capable of handling up to 2,900 tankers daily through round-the-clock operations.
The system, it noted, can evacuate more than 50 million litres of petrol and about 14 million litres of diesel every day.
“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 company said.
Coastal shipping could add N75 per litre
While emphasising that it does not compel marketers to use any particular evacuation channel, Dangote Refinery warned that coastal logistics could add roughly N75 per litre to the cost of petrol.
“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,” the statement said.
Industry analysts note that with petrol currently selling between N839 and N900 per litre in many parts of the country, an extra N75 per litre could easily push prices beyond the N1,000 threshold.
