Dangote Petroleum Refinery has cautioned that continued reliance on coastal shipping to distribute petrol could push pump prices to N1,000 per litre if the additional costs are passed to consumers.
In a statement on Thursday, the refinery highlighted that transporting petroleum products by sea is significantly more expensive than pipelines or truck loading from its facilities. These costs include port charges, maritime levies, and vessel-related expenses, which add roughly N75 per litre to petrol prices.
“Nigeria consumes about 50 million litres of petrol and 14 million litres of diesel daily. Coastal logistics could impose an additional annual cost of about N1.752 trillion,” the refinery said.
Dangote emphasized that while marketers may choose their preferred distribution method, gantry-based truck loading remains the most cost-efficient, eliminating layers of unnecessary expenses and supporting price stability.
The warning comes as Nigeria continues to benefit from the start of domestic refining. Local supply has already helped lower diesel from N1,700 to about N980–990 per litre and petrol from N1,250 to N839–900 per litre, eased foreign exchange pressure, and strengthened the naira to roughly N1,385 per dollar.
The Lagos-based refinery, which produces 650,000 barrels per day, operates a 91-bay gantry facility capable of loading up to 2,900 tankers daily. It has also announced plans to expand capacity to 1.4 million barrels per day.
Dangote called for coordinated investments in pipeline infrastructure to further reduce distribution costs and ensure that the benefits of local refining are fully realised.
In January, the company reaffirmed its commitment to operating at full capacity and supplying over 50 million litres of petrol daily to the Nigerian market.
This caution underscores the growing role of distribution logistics in fuel pricing, even as domestic refining capacity rises.
