Dangote Refinery has urged petroleum marketers to stop using coastal fuel delivery services offered by oil marketing companies and instead adopt its direct gantry loading system, citing a cost advantage of about N75 per liter.
The 650,000-barrel-per-day refinery disclosed this in a statement on Thursday, warning that continued dependence on coastal delivery could drive petrol prices sharply higher.
According to the refinery, marketers who rely on coastal logistics risk pushing the pump price of Premium Motor Spirit (PMS) close to N1,000 per liter due to additional transportation and handling costs. The company estimated that marketers incur about N1.75 trillion in logistics losses annually from coastal delivery, based on an average daily fuel consumption of approximately 50 million liters.
Dangote Refinery noted that coastal delivery, particularly within Lagos, creates avoidable expenses that have significant consequences for fuel pricing, consumer welfare, and overall economic stability.
“Reliance on coastal delivery, especially within Lagos, introduces avoidable costs with material implications for fuel pricing, consumer welfare, and overall economic well-being. Our assessment shows that coastal logistics can add around 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 statement said.
Meanwhile, check Nigerian Newssphere show that petrol prices in Abuja currently range between N839 and N905 per liter. While Dangote Refinery’s partner, MRS filling stations, sells petrol at N839 per liter, other major outlets—including the Nigerian National Petroleum Company Limited (NNPCL), AA Rano, Shema, NIPCO, and Raniol—retail the product at prices between N875 and N905 per liter.
