Dangote Gives Reasons Petrol May Sell For N1,000/Litre, Offers Solution
- Dangote Refinery has warned that petrol could approach N1,000 per litre if Nigeria relies heavily on coastal fuel evacuation
- The refinery said gantry loading is cheaper and more efficient, noting its capacity to load up to 2,900 trucks daily
- Dangote Refinery estimated that coastal logistics could cost the economy N1.75 trillion annually
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Dangote Petroleum Refinery has warned Nigerians that the price of Premium Motor Spirit (PMS), also known as petrol, could rise close to N1,000 per litre if the country continues to rely heavily on coastal fuel evacuation.
The refinery said its warning is aimed at drawing attention to the impact of logistics decisions on pump prices, consumer welfare and the wider economy, stressing that inefficient evacuation methods could erode the gains of domestic refining.
Source: Getty Images
Dangote Refinery: Why petrol price is increasing
In a statement released on Thursday, February 6, 2026, the company noted that coastal delivery of petrol introduces multiple charges that do not add value to consumers.
It is estimated that these costs could add about N75 per litre to the price of petrol, pushing pump prices toward the N1,000 mark if passed on to motorists.
Dangote Refinery argued that gantry evacuation remains the most cost-effective option, especially for Lagos and nearby markets.
The facility, which has 91 loading bays and operates 24 hours daily, can load up to 2,900 trucks a day and evacuate over 50 million litres of PMS, about 14 million litres of diesel, and other refined products daily.
Based on Nigeria’s estimated daily consumption of 50 million litres of petrol and 14 million litres of diesel, the refinery warned that sustained dependence on coastal evacuation could impose an additional annual cost of about N1.75 trillion on the economy, a burden that would ultimately be borne by consumers or producers.
Source: Getty Images
The refinery said marketers are free to choose their preferred evacuation method, adding that its products are available at competitive gantry prices.
However, it maintained that gantry loading eliminates port charges, maritime levies and vessel-related costs, helping to stabilise fuel prices.
Importance of Dangote Refinery
Dangote Refinery also renewed its call for nationwide investment in pipeline infrastructure, saying functional pipelines linking refineries to depots would significantly reduce distribution costs, improve supply reliability and strengthen energy security.
Responding to claims that it imports finished petroleum products, the refinery dismissed the allegations as misleading, explaining that it only imports intermediate feedstock while one of its processing units undergoes routine maintenance.
Highlighting the impact of local refining, the company said diesel prices have fallen from about N1,700 per litre to around N1,100, now trading between N980 and N990, while PMS prices have declined from about N1,250 per litre to between N839 and N900, the Sun reports.
The refinery said increased domestic supply has reduced fuel imports, eased pressure on foreign exchange and improved market stability, contributing to a stronger naira, which recently traded around N1,385 to the dollar.
Dangote Refinery further reaffirmed its commitment to affordable pricing and efficient logistics, urging regulators, marketers and policymakers to support fuel distribution strategies that protect consumers and sustain the benefits of domestic refining.
Dangote responds to marketers over monopoly claims
Earlier, Legit.ng reported that Dangote Petroleum Refinery pushed back against claims by fuel marketers that it was unable to meet Nigeria's domestic fuel needs.
The refinery said it has sufficient capacity to supply the local market, while also exporting refined products. It also dismissed suggestions that it was struggling to meet demand.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
