Dangote Refinery has warned that petrol prices could rise sharply, potentially nearing N1,000 per litre, if fuel distribution relies heavily on coastal transportation and the associated costs are passed on to consumers.

The refinery raised the concern in a statement released on Thursday, explaining key aspects of its fuel production and evacuation process. It said its operations are designed to minimise distribution costs through the use of gantry loading, which it described as the most efficient and cost-effective method of moving petroleum products.

According to the company, its gantry facility is equipped with 91 loading bays and can dispatch up to 2,900 trucks daily through continuous 24-hour operations.

This system, it said, allows for the evacuation of over 50 million litres of petrol and about 14 million litres of diesel each day.

Dangote Refinery noted that gantry loading helps avoid port-related charges, maritime levies, and vessel costs that typically come with coastal transportation and do not add value for end users.

While stressing that marketers are free to choose between gantry and coastal loading, the refinery cautioned that coastal logistics could significantly raise fuel costs. It estimated that transporting petrol through coastal routes could add about N75 per litre, which may push pump prices close to N1,000 per litre if the extra cost is transferred to consumers.

The company also highlighted the broader economic implications, stating that Nigeria’s daily fuel consumption averages around 50 million litres of petrol and 14 million litres of diesel. It warned that continued dependence on coastal logistics could impose an additional annual cost of roughly N1.75 trillion on the economy.

Emphasising the benefits of local refining, Dangote Refinery said domestic fuel production has already helped reduce prices. It noted that diesel prices have dropped from about N1,700 per litre to below N1,000, while petrol prices have declined from roughly N1,250 to between N839 and N900 per litre.

The refinery added that local refining has eased pressure on foreign exchange demand and supported naira stability.