Dangote Refinery has warned that petrol prices in Nigeria could edge close to N1,000 per litre if coastal logistics costs are passed on to consumers, raising fresh concerns about the stability of fuel pricing in the country.
Gantry vs Coastal Loading
The refinery highlighted that its gantry facility, considered the most cost-efficient, can handle up to 2,900 tankers daily and evacuate more than 50 million litres of petrol and 14 million litres of diesel through continuous 24-hour operations. By using gantry loading, port charges, maritime levies, and vessel-related expenses are avoided, keeping costs lower for end users.
Dangote emphasised that marketers can freely choose between gantry and coastal evacuation, but warned that using coastal logistics could add about N75 per litre to petrol costs. If this additional cost is transferred to consumers, pump prices could soar close to N1,000 per litre.
Impact on Fuel Prices
The refinery pointed out that local refining has already significantly reduced fuel costs. Diesel prices have fallen from about N1,700 to N980–N990 per litre, while petrol has dropped from around N1,250 to between N839 and N900 per litre. The company added that local refining also eases foreign exchange pressure and supports naira stability.
The Cost to the Economy
Dangote Refinery warned that reliance on coastal logistics could add approximately N1.752 trillion annually to fuel costs, underlining the financial risks if the extra charges are passed on. With Nigeria’s daily consumption averaging 50 million litres of petrol and 14 million litres of diesel, even small changes in logistics costs could have a widespread impact.
The refinery’s statement comes at a time when fuel pricing remains a hot-button issue for consumers and policymakers, highlighting the delicate balance between supply logistics, cost efficiency, and economic stability.
What This Means for Consumers
While gantry loading keeps prices manageable, coastal logistics present a real threat to affordability. Nigerians could face nearly N1,000 per litre for petrol if decisions are made without considering the cost impact. For now, the refinery is urging careful planning and strategic use of its gantry system to protect consumers from steep price spikes.
