Dangote Refinery Backs Gantry Loading, Warns Coastal Evacuation Could Push Petrol Prices to N1,000 per Litre

Dangote Refinery Backs Gantry Loading, Warns Coastal Evacuation Could Push Petrol Prices to N1,000 per Litre

Dangote Petroleum Refinery has reiterated its commitment to delivering high-quality petroleum products at competitive prices, cautioning marketers and policymakers against logistics choices that could increase fuel costs and undermine consumer welfare.

The refinery said its position is supported by sustained investments in critical evacuation infrastructure, particularly its state-of-the-art gantry facility, which features 91 loading bays and can load up to 2,900 trucks daily. Operating round the clock, the gantry is capable of evacuating over 50 million litres of Premium Motor Spirit (PMS), 14 million litres of Automotive Gas Oil (diesel), and other refined products every day.

While maintaining openness to coastal loading where logistics make it unavoidable, Dangote Refinery stressed that gantry loading remains the most efficient and cost-effective evacuation option. According to the company, direct gantry evacuation eliminates port charges, maritime levies, and vessel-related expenses that add no value to end consumers, thereby supporting price stability and efficient nationwide distribution.

The refinery clarified that marketers are free to choose their preferred evacuation method, noting that PMS and other products are offered at competitive gantry prices. However, it warned that reliance on coastal delivery—especially within Lagos—could introduce avoidable costs with serious implications for fuel pricing and economic welfare.

“In our opinion, coastal logistics can add approximately N75 per litre to the cost of petrol. If passed on to consumers, this could push the pump price of PMS close to N1,000 per litre,” the refinery stated.

Based on Nigeria’s average daily consumption of about 50 million litres of PMS and 14 million litres of diesel, Dangote Refinery estimated that sustained dependence on coastal evacuation could impose an additional annual cost of approximately N1.752 trillion, a burden that would ultimately be borne by producers or Nigerian consumers.

The refinery also renewed its call for coordinated nationwide investment in pipeline infrastructure, arguing that functional pipelines linking refineries to depots would significantly reduce distribution costs, improve supply reliability, and strengthen Nigeria’s energy security.

Addressing claims that it imports finished petroleum products, Dangote Refinery firmly dismissed the allegations as misleading. It explained that while its Residue Fluid Catalytic Cracking (RFCC) Unit is currently undergoing maintenance, it only imports intermediate feedstock, a practice consistent with global refining standards.

The company challenged anyone with credible evidence of finished product importation to present it to the appropriate regulatory authorities, noting that such claims are often driven by interests seeking to justify continued reliance on fuel imports.

Dangote Refinery highlighted the tangible economic benefits of domestic refining, noting that since operations commenced, diesel prices have fallen from about N1,700 per litre to between N980 and N990, while PMS prices have declined from around N1,250 per litre to between N839 and N900.

It added that increased local supply has significantly reduced fuel importation, eased pressure on foreign exchange demand, and contributed to improved market stability, strengthening the naira, which recently traded at about N1,385 to the dollar.

The refinery reaffirmed its commitment to efficiency, transparency, and price stability in Nigeria’s downstream petroleum sector, urging marketers, regulators, and policymakers to support logistics and distribution decisions that align with national economic interests, protect consumers, and sustain the long-term benefits of domestic refining.