Coastal logistics could push PMS close to N1,000/litre, Dangote refinery warns

Dangote Refinery has outlined its gas manufacturing and distribution operations, warning that reliance on coastal logistics may considerably enhance petrol costs if the extra prices are transferred to customers.

In a press release on its official X account on Thursday titled “Six issues to learn about Dangote Refinery gas manufacturing and distribution”, the corporate stated its refinery operates a world-class gantry facility with 91 loading bays, able to dealing with as much as 2,900 tankers every day and evacuating over 50 million litres of petrol and 14 million litres of diesel by means of steady 24-hour operations.

Dangote famous that gantry loading, which it described as essentially the most cost-efficient evacuation technique, helps eradicate port costs, maritime levies, and vessel-related bills that don’t profit finish customers.

The agency stated, “Gantry loading is recognized as essentially the most cost-efficient evacuation technique, because it eliminates port costs, maritime levies and vessel-related prices that don’t profit finish customers.”

The refinery additionally emphasised that entrepreneurs are free to decide on between gantry and coastal loading, including that the corporate doesn’t impose restrictions on evacuation modes. Nevertheless, it warned that coastal logistics may add about N75 per litre to petrol prices, doubtlessly pushing pump costs near N1,000 per litre if handed on to customers.

“Entrepreneurs are free to decide on between gantry and coastal loading, and the refinery doesn’t impose restrictions on evacuation modes. Coastal logistics can add about N75 per litre to petrol prices, doubtlessly pushing PMS pump costs near N1,000 per litre if handed on to customers,” it stated.

Dangote Refinery added that Nigeria’s every day consumption averages “about 50 million litres of PMS and 14 million litres of diesel,” noting that reliance on coastal logistics may impose “an extra annual value of roughly N1.752 trillion.”

Highlighting the impression of native refining, the agency stated, “Native refining has considerably decreased gas costs, with diesel falling from about N1,700 to N980–N990 per litre, and PMS dropping from round N1,250 to N839–N900 per litre, whereas additionally easing FX strain and supporting naira stability.”