The Digest:
Dangote Refinery has cautioned that continued reliance on coastal logistics for evacuating petroleum products could raise the pump price of petrol to nearly ₦1,000 per litre. In a statement, the refinery estimated that coastal delivery, transporting fuel by ship along the coastline, could add up to ₦75 per litre in extra costs, translating to an annual burden of about ₦1.75 trillion based on Nigeria’s daily consumption. While marketers are free to choose their evacuation method, Dangote emphasized that its 24-hour gantry facility, with 91 loading bays, offers a more cost-efficient alternative by eliminating port charges and vessel-related expenses. The refinery also denied importing finished petroleum products, attributing recent fuel price reductions to its domestic operations.
Key Points:
- High logistics costs directly impact fuel affordability and overall economic stability for consumers and businesses.
- Efficient inland evacuation infrastructure is critical to maintaining price stability and reducing distribution expenses.
- Dangote’s gantry system presents a scalable, cost-effective solution to mitigate reliance on coastal shipment.
- The statement underscores the need for coordinated investment in pipeline networks and inland logistics nationwide.
- Domestic refining capacity has already contributed to lower diesel and petrol prices, easing FX pressure and supporting the naira.
Dangote’s warning highlights the urgent need for optimized logistics frameworks to prevent avoidable cost escalations and ensure sustainable fuel pricing in Nigeria.
Sources: The Cable, Channels Tv
