The Dangote Petroleum Refinery has sounded the alarm over a newly hired depot, reportedly leased by an international trading company, which is allegedly engaged in blending substandard petroleum products in Nigeria.
According to the refinery, this depot, located adjacent to Dangote’s operations, was leased with the intent of blending and distributing inferior fuel products that unsuspecting Nigerians could end up purchasing. The Group Chief Branding and Communications Officer of Dangote Group, Anthony Chiejina, voiced these concerns in a press statement on Sunday, describing the depot’s activities as a threat to both Nigeria’s refining industry and public safety.
This statement follows remarks from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other associations suggesting that imported fuel is cheaper than the fuel currently sold by Dangote’s refinery.
The refinery restated that any marketer claiming to sell Premium Motor Spirit (PMS) at a price lower than the market rate is likely bringing in substandard products in collaboration with international traders to flood Nigeria with low-quality fuel.
Recently, oil marketers disclosed that the cost of PMS from the Dangote Petroleum Refinery ranged from N1,015 to N1,028 per litre, depending on the purchase volume. Based on this price point, dealers expressed intentions to import fuel and sell it at a price below Dangote’s rates, as well as the rates set by the Nigerian National Petroleum Company Limited (NNPC).
While the refinery had previously dismissed marketers’ claims, on Sunday it further alleged that certain traders are collaborating with an international company to blend and introduce low-quality products into the market, in a bid to undercut Dangote’s premium fuel.
“We had lately refrained from engaging in media disputes, but we feel compelled to respond to recent misinformation spread by IPMAN, PETROAN, and other associations,” the statement read. “Both organisations claim they can import PMS at prices lower than Dangote refinery’s. We set our prices competitively, in line with international standards.
“If anyone asserts they can land PMS at a cheaper price, they are likely importing substandard products and collaborating with international traders to dump low-quality fuel into the country, disregarding the health and safety of Nigerians and the longevity of their vehicles.
“Moreover, an international trading company has recently rented a depot near the Dangote Refinery with the purpose of blending substandard products intended for the market, competing with our high-quality production,” it added, calling the move detrimental to Nigeria’s domestic refining industry.
The statement also pointed out the limitations of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) in detecting substandard fuel, citing the absence of a fully functional laboratory for quality testing.
“Unfortunately, NMDPRA lacks laboratory facilities to detect substandard products when they’re imported into the country,” Dangote said.
Discussing its pricing policy, the $20 billion Lekki-based refinery announced that it has set its petrol prices at N960 per litre for ship-based supply and N990 per litre for truck-based supply, aligning with the recent sector deregulation.
The NNPC had set prices at N971 for ship deliveries and N990 for trucks. In response, Dangote reduced its ship-based rate to N960, while maintaining the truck rate at N990.
“In good faith and in the interest of the nation, we commenced sales at these prices despite uncertainty around the exchange rate for crude purchases,” the statement continued.
Additionally, Dangote’s spokesperson stressed the importance of protecting local industries, a practice adopted by other countries to boost their economies.
“Protecting domestic industries to foster jobs and economic growth is standard practice. The US and Europe have imposed high tariffs on EVs and microchips for similar reasons,” Chiejina noted. “We remain committed to supplying affordable, high-quality, domestically refined petroleum products to Nigerians and urge the public to ignore the disinformation spread by those who prefer exporting jobs and importing poverty.”