Dangote Refinery Responds to Allegations of Overpricing, Accuses Competitors of Importing Substandard PMS

In a strongly worded statement, Dangote Refinery has addressed recent claims by petroleum associations IPMAN (Independent Petroleum Marketers Association of Nigeria) and PETROAN (Petroleum Retailers Outlets Association of Nigeria), accusing the groups of spreading misinformation about fuel pricing. The refinery states that its prices are competitive and are benchmarked against international standards, challenging the notion that fuel can be imported at lower rates without compromising quality.

According to the refinery's press release, IPMAN and PETROAN's claims of cheaper import prices suggest that these organizations are bringing in substandard fuel products. Dangote Refinery expressed concerns that this could jeopardize the health of Nigerian consumers and the lifespan of their vehicles, as it alleges that imported products lack quality control due to inadequate regulatory testing facilities. It criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for lacking the necessary laboratory facilities to detect and prevent low-quality fuel imports.

Since Nigeria’s fuel deregulation, Dangote Refinery has set its prices at N960 per litre for fuel sold into ships and N990 per litre for trucks. The refinery disclosed that it initially matched the pricing structure of the Nigerian National Petroleum Corporation (NNPC), which had been selling fuel at N971 per litre for ships and N990 for trucks. The refinery further stated that these prices are being maintained despite uncertainty in foreign exchange rates affecting crude oil payments.

The statement also addressed recent developments in the fuel import market, citing concerns over an international trading company that recently leased a depot near the Dangote facility. Dangote Refinery claims the depot aims to mix substandard products, which could potentially flood the market with inferior fuel in competition with locally refined, higher-quality products.

“Supporting domestic refining is crucial for Nigeria’s economy,” Dangote Refinery said, adding that countries like the United States and those in Europe have taken measures to protect their local industries, such as imposing tariffs to safeguard the production of electric vehicles and microchips.

In closing, Dangote Refinery called on the public to disregard the “deliberate disinformation” from groups allegedly working to promote fuel imports over local production, urging Nigerians to support domestically refined petroleum products for economic growth and job creation.