Dangote Petroleum Refinery issued a warning that reliance on coastal logistics for fuel distribution could increase petrol prices significantly. The refinery released a statement on February 5, 2026, highlighting potential added costs.
“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 stated.
Details of Coastal Operations
The refinery explained that coastal logistics involved transporting fuel via ships or barges to depots outside Lagos. However it favored road transportation using trucks for direct delivery to filling stations nationwide.
“Coastal logistics can add about N75 per litre to petrol costs, potentially pushing PMS pump prices close to N1,000 per litre if passed on to consumers,” the statement noted.
Impact on National Consumption
Nigeria consumed about 50 million litres of petrol and 14 million litres of diesel daily, according to the refinery. Meanwhile dependence on coastal methods could lead to an extra annual cost of N1.752 trillion. The refinery added that marketers demanded discounts of N70 per litre on coastal freight, NIMASA, NPA, and related fees.
Market Reactions and Concerns
Industry stakeholders expressed concerns over the implications. For instance, marketers worried that higher logistics expenses might force retail prices upward. Moreover the refinery emphasized its commitment to efficient distribution to minimize consumer burdens.
