Dangote Petroleum Refinery has urged fuel marketers and policymakers to rethink Nigeria’s product evacuation strategy, warning that reliance on coastal loading could significantly inflate fuel prices and undermine the gains of domestic refining.
The refinery said its position is driven by a focus on efficiency, affordability and consumer welfare, stressing that its logistics investments were designed to stabilize prices and lower distribution costs across the country, reports Daily Sun.
At the center of its argument is its gantry loading infrastructure, which the refinery described as one of the most advanced in the world. The facility has 91 loading bays and operates round-the-clock, with the capacity to load up to 2,900 trucks daily. According to the refinery, the gantry can evacuate more than 50 million liter of Premium Motor Spirit, about 14 million liters of Automotive Gas Oil, diesel, and other refined products each day.
While acknowledging that coastal loading may be unavoidable in certain circumstances, Dangote Refinery said gantry evacuation remains the most cost-effective option, particularly for deliveries within Lagos and nearby markets. It argued that coastal logistics introduce charges that do not add value to consumers.
“However, reliance on coastal delivery, particularly within Lagos, may introduce avoidable costs with material implications for fuel pricing, consumer welfare and overall economic wellbeing. In our opinion, coastal logistics can add approximately N75 per liter to the cost of petrol, which, if passed on to consumers, would push the pump price of PMS close to N1,000 per liter,” the refinery said.
Based on Nigeria’s estimated daily consumption of about 50 million liters of petrol and 14 million liters of diesel, the refinery warned that sustained dependence on coastal evacuation could impose an additional annual cost of roughly N1.752 trillion on the economy, a burden that would ultimately fall on producers or consumers.
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Dangote Refinery stressed that marketers are free to choose their preferred mode of evacuation, adding that PMS and other products are available at competitive gantry prices. It maintained, however, that gantry loading eliminates port charges, maritime levies and vessel-related costs, helping to optimize logistics and support price stability.
The refinery also renewed its call for coordinated investment in pipeline infrastructure nationwide, arguing that functional pipelines linking refineries to depots would drastically cut distribution costs, improve supply reliability and enhance national energy security.
Responding to claims that it imports finished petroleum products, the refinery dismissed the allegations as misleading. It explained that although its Residue Fluid Catalytic Cracking Unit is currently undergoing maintenance, it only imports intermediate feedstock in line with global industry practice.
Dangote Refinery challenged anyone with credible evidence of finished product importation to present it to the appropriate regulatory authorities, adding that such claims are often driven by interests seeking to justify continued dependence on fuel imports.
Highlighting the impact of local refining, the refinery said diesel prices have dropped from about N1,700 per liter to around N1,100, now trading between N980 and N990. Similarly, PMS prices have declined from about N1,250 per liter to between N839 and N900.
It added that increased domestic supply has reduced fuel imports, eased pressure on foreign exchange and improved market stability, contributing to a stronger naira, which recently traded at about N1,385 to the dollar.
The refinery reaffirmed its commitment to efficiency, transparency and affordable pricing in Nigeria’s downstream petroleum sector, urging regulators, marketers and policymakers to support logistics decisions that protect consumers, strengthen the economy and sustain the long-term benefits of domestic refining.
Centurypost.co.ng
