Coastal logistics may drive petrol prices to N1,000/litre – Dangote

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Dangote Petroleum Refinery has warned that continued reliance on coastal delivery of petroleum products could push petrol prices close to N1,000 per litre in Nigeria.The company stressed that its preferred gantry loading remains the most efficient and cost-effective method to ensure price stability for consumers.The refinery, in a statement on Thursday, explained that its position is supported by sustained investments in critical infrastructure, including a “world-class gantry facility” with 91 loading bays capable of loading up to 2,900 tankers daily.Operating on a 24-hour basis, it said the facility can evacuate over 50 million litres of premium motor spirit, 14 million litres of diesel, and other refined products each day.While acknowledging that coastal loading is an option where logistics require, the refinery emphasised that gantry evacuation eliminates additional costs.“Direct gantry evacuation eliminates port charges, maritime levies and vessel-related costs that do not add value to end users, helping to optimise costs, improve distribution efficiency and support price stability,” the company stated.It also clarified that marketers are free to choose their preferred mode of evacuation, with PMS and other refined products available at competitive gantry prices.However, reliance on coastal delivery, particularly within Lagos, may introduce avoidable costs with material implications for fuel pricing, consumer welfare, and overall economic well-being. In our opinion, coastal logistics can add approximately N75 per litre to the cost of petrol, which, if passed on to consumers, would push the pump price of PMS close to N1,000 per litre,” the refinery said.

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