Petrol Could Reach N1000/Litre as Dangote Refinery Flags High Coastal Transport Costs
Nigeria’s Dangote Refinery has issued a warning that the price of petrol in the country could reach N1000 per litre if costly coastal logistics are not addressed. The refinery, which is among the largest in Africa and one of the most modern globally, said that rising transportation and distribution costs are the main drivers behind the potential surge in fuel prices. According to officials, the challenge lies not in production, as the refinery continues to operate at high efficiency, but in the distribution process, particularly along coastal shipping routes. Moving refined petroleum products from the refinery to major consumption hubs involves substantial logistics, including shipping, offloading at ports, inland transport, and local distribution to petrol stations. Each stage adds costs, which could ultimately be passed on to consumers. Dangote Refinery highlighted that current logistical expenses are unsustainable. “The cost of moving petroleum products via coastal routes, combined ...