WorldStage– Dangote Petroleum Refinery has thrown its weight behind gantry loading of petroleum products, saying reliance on coastal delivery, particularly within Lagos, may introduce avoidable costs with material implications for fuel pricing, consumer welfare and overall economic wellbeing.
Dangote Petroleum Refinery in a statement estimated that based on Nigeria’s average daily consumption of about 50 million litres of PMS and 14 million litres of diesel, coastal logistics can add approximately N75 per litre to the cost of petrol which could impose an additional annual cost of roughly N1.752 trillion.
It said if the cost is passed on to consumers, it would push the pump price of PMS close to N1,000 per litre.
Since commencement of operations by Dangote Refinery, it observed that the price of diesel has fallen from about N1,700 per litre to N1,100 and currently trades between N980 and N990. Similarly, PMS prices have declined from about N1,250 per litre to between N839 and N900.
Dangote Refinery clarified that marketers are free to choose their preferred mode of evacuation, noting that PMS and other refined products are made available at competitive gantry prices.
The refinery also renewed calls for coordinated investment in pipeline infrastructure nationwide, arguing that functional pipelines linking refineries to depots would significantly cut distribution costs, improve supply reliability and strengthen national energy security.
It added that increased local supply has sharply reduced fuel importation, eased foreign exchange pressures and improved market stability, contributing to a stronger naira, which recently traded at about N1,385 to the dollar.
The refinery reiterated 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
