PMS May Sell N1,000 Per Litre if Marketers Adopt Costly Coastal Loading

By Aduragbemi Omiyale

Nigerians may be forced to purchase premium motor spirit (PMS), commonly known as petrol, for almost N1,000 per litre if marketers choose to go for the costly coastal evacuation and not the cheaper gantry loading, the Dangote Petroleum Refinery has cautioned.

Though the company clarified that marketers were free to choose their preferred mode of evacuation, it emphasised that the implication of adopting the coastal loading was that consumers would pay more for the product because of the extra costs.

According to Dangote Refinery, “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 firm noted that its “world-class gantry facility” has 91 loading bays capable of loading up to 2,900 tankers daily.

Operating on a 24-hour basis, the facility can evacuate over 50 million litres of Premium Motor Spirit PMS, 14 million litres of Automotive Gas Oil (diesel) and other refined products each day, it added, urging marketers and policymakers to prioritise logistics choices that support price stability and consumer welfare.

It stressed that 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.

“Reliance on coastal delivery, particularly within Lagos, may introduce avoidable costs with material implications for fuel pricing, consumer welfare and overall economic wellbeing,” the company stated in a statement.

Based on Nigeria’s average daily consumption of about 50 million litres of PMS and 14 million litres of diesel, the refinery estimated that sustained dependence on coastal logistics could impose an additional annual cost of roughly N1.752 trillion. This cost, it said, would ultimately be borne either by producers or Nigerian consumers.

The refinery also renewed calls for coordinated investment in pipeline infrastructure nationwide, arguing that functional pipelines linking refineries to depots would significantly cut distribution costs, improve supply reliability and strengthen national energy security.

It said domestic refining has already delivered measurable benefits to the Nigerian economy. Since the commencement of operations, the price of diesel has fallen from about N1,700 per litre to N1,100 and currently trades between N980 and N990. Similarly, PMS prices have declined from about N1,250 per litre to between N839 and N900.

It added that increased local supply has sharply reduced fuel importation, eased foreign exchange pressures and improved market stability, contributing to a stronger naira, which recently traded at about N1,385 to the dollar.