Dangote Petroleum Refinery has warned that continued reliance on coastal delivery of petroleum products could push petrol prices close to N1,000 per litre in Nigeria.
In a statement on February 5, 2026, the refinery outlined its concerns about the cost implications of coastal logistics for petrol distribution. Dangote emphasised the importance of efficient evacuation methods to stabilise fuel prices for consumers.
The refinery said its preferred gantry loading system remains the most cost-effective method for fuel evacuation. It noted that the facility operates with 91 loading bays and can handle up to 2,900 tankers daily.
The gantry system operates 24 hours and can evacuate over 50 million litres of premium motor spirit and 14 million litres of diesel each day.
Dangote said direct gantry evacuation eliminates additional costs such as port charges, maritime levies, and vessel-related expenses that do not benefit end users. The company said marketers are free to choose between gantry and coastal loading.
The refinery stated, “However, reliance on coastal delivery, particularly within Lagos, may introduce avoidable costs with material implications for fuel pricing, consumer welfare, and overall economic well-being.
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 N1,000 per litre.”
Dangote also estimated that sustained dependence on coastal logistics could impose an additional annual cost of roughly N1.75 trillion based on Nigeria’s average daily consumption of about 50 million litres of petrol and 14 million litres of diesel.
The refinery urged coordinated investment in pipeline infrastructure nationwide. It said functional pipelines linking refineries to depots would significantly lower distribution costs, improve supply reliability, and strengthen national energy security.
The company addressed allegations of importing finished petroleum products, calling such claims misleading. It said,
“While our Residue Fluid Catalytic Cracking Unit is currently undergoing maintenance, we only import intermediate feedstock in line with global industry practice.”
Dangote highlighted the benefits of domestic refining. It said diesel prices had fallen from about N1,700 per litre to between N980 and N990, while petrol prices had dropped from around N1,250 per litre to between N839 and N900.
The refinery said increased local supply had reduced fuel importation and eased foreign exchange pressures.
