Amanze Chinonye
Dangote Refinery has outlined key facts about its fuel production and distribution operations, warning that increased reliance on coastal transportation could significantly raise petrol prices and impose a heavy cost burden on the Nigerian economy, Prime Business Africa reports.
In a press statement issued on Thursday, the company said it operates a gantry facility with 91 loading bays capable of loading up to 2,900 tankers daily. According to the refinery, the facility runs 24 hours a day and can evacuate more than 50 million litres of premium motor spirit (PMS) and 14 million litres of diesel daily.
The refinery identified gantry loading as the most cost-efficient method of evacuating petroleum products, noting that it eliminates port charges, maritime levies and vessel-related costs that do not benefit end users. It stressed that marketers are free to choose between gantry loading and coastal shipping, adding that it does not impose restrictions on evacuation modes.
Join our WhatsApp ChannelHowever, the company warned that coastal logistics could add about N75 per litre to the cost of petrol, a margin that could push PMS pump prices close to N1,000 per litre if passed on to consumers. It said Nigeria’s average daily consumption of about 50 million litres of PMS and 14 million litres of diesel means heavy reliance on coastal evacuation could impose an additional annual cost of approximately N1.752 trillion on the economy.
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Dangote Refinery also said local refining has already delivered significant price relief in the downstream market. According to the statement, diesel prices have fallen from about N1,700 per litre to between N980 and N990, while PMS prices have declined from around N1,250 per litre to between N839 and N900.
The company added that increased domestic refining has helped ease pressure on foreign exchange demand and contributed to improved naira stability, underscoring the importance of sustaining local production and cost-efficient distribution methods.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
