The Dangote Petroleum Refinery has issued a warning to Nigerians about substandard petroleum products being blended at a nearby depot. Leased by an international trading company, the depot, located adjacent to the Dangote Refinery, is allegedly being used to produce low-quality fuel aimed at undercutting the refinery’s prices in the Nigerian market. This warning was communicated by Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Group, who raised concerns about the impact on both public safety and the nation’s refining sector.
The statement comes amid claims by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other groups that imported fuel is cheaper than that supplied by the Dangote Refinery. Chiejina countered this, emphasizing that any fuel sold below Dangote’s price likely involves low-grade products imported with the assistance of international traders.
“Both IPMAN and PETROAN claim they can import PMS at lower prices than what is being sold by the Dangote Refinery,” Chiejina said. “We benchmark our prices against international rates, and our prices remain competitive. If others are claiming to offer lower prices, they are likely importing substandard products and are putting the health of Nigerians and the durability of their vehicles at risk.”
He further revealed that the nearby depot leased by the international trading firm has been blending substandard petroleum products, which are then dumped into the Nigerian market. Chiejina noted that these low-quality imports directly compete with the high-quality fuel produced by the Dangote Refinery and hinder growth in the domestic refining industry.
The refinery also highlighted the challenge posed by Nigeria’s regulatory body, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), which currently lacks adequate laboratory facilities to detect substandard fuel imports. “Unfortunately, NMDPRA does not have the laboratory facilities required to identify substandard products entering the country,” the statement read.
In response to recent price comparisons, the Dangote Refinery clarified its pricing structure, revealing that it has set its price for Premium Motor Spirit (PMS) at N960 per litre for shipments and N990 per litre for truck-based supply. This is below the Nigerian National Petroleum Company’s (NNPC) rates of N971 and N990 for ships and trucks, respectively, following the sector’s deregulation.
“In good faith and for the benefit of Nigeria, we initiated sales at these rates despite uncertainty around the exchange rate for crude purchases,” the statement added. The Dangote Group also defended the importance of supporting local industries, drawing comparisons with protectionist policies in other countries, like high tariffs on electric vehicles and microchips in the US and Europe.
Chiejina urged Nigerians to dismiss misinformation spread by groups promoting cheap imports over locally refined products. “While we remain dedicated to offering affordable, high-quality, Nigerian-refined products, we call on the public to disregard disinformation from those who would rather we export jobs and import poverty,” he stated.
With this alert, the Dangote Refinery aims to protect public health and advocate for a thriving domestic refining industry amidst mounting challenges from low-cost, substandard imports.
