“The ₦1,000 Per Litre Threat!” Dangote Warns Fuel Prices Could Skyrocket if Marketers Stick to Costly Sea Shipping

Nigerians may soon be digging even deeper into their pockets at the petrol pumps. The Dangote Petroleum Refinery issued a sharp warning on Thursday, stating that the price of Premium Motor Spirit (PMS) could hit the dreaded ₦1,000 per litre mark if oil marketers refuse to abandon “inefficient” coastal logistics in favor of direct truck loading.

In a detailed breakdown of its operations, the refinery explained that while it does not dictate how marketers move their products, the choice of “coastal evacuation” using ships to move fuel from the refinery to other depots—adds a staggering ₦75 per litre in extra costs. These fees, which include port levies and vessel chartering, do nothing to improve the quality of the fuel but add a massive premium to the final price tag.

“Marketers are free to choose their mode of evacuation,” a statement from the Dangote Group read. “However, choosing coastal logistics introduces avoidable costs. If these are passed on to the public, we are looking at pump prices creeping toward ₦1,000 per litre.”

The refinery is instead pushing for a “land-first” approach, highlighting its world-class gantry facility that can handle 2,900 tankers every single day. By loading directly into trucks, the refinery argues that the “middleman costs” of the sea are eliminated, keeping prices within the current ₦840 to ₦900 range.

The stakes are high for the national economy. Dangote estimates that sticking to the “old way” of coastal shipping will drain ₦1.75 trillion from the pockets of Nigerians every year.

This warning comes at a delicate time for the energy sector. With international crude prices surging past $70 per barrel, the cost of production is already rising. For the average Nigerian commuter, the message is clear: the future of their transport fare depends largely on whether the fuel they buy arrived by road or by sea.