The Dangote Petroleum Refinery has raised concerns about the operations of a new depot, which has been reportedly leased by an unnamed international trading company. This depot is alleged to be involved in blending substandard petroleum products within Nigeria that are likely to flood the market, potentially endangering consumers and harming the country’s refining industry. Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, expressed serious worries in a recent press statement, describing the blending of these low-quality products as a threat to public safety and the integrity of Nigeria’s petroleum sector. The rising competition from these substandard products could undermine the efforts of the Dangote refinery, which is positioned to promote quality standards in domestic fuel production.
The concern comes in response to claims made by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other fuel marketing bodies, who stated that the price of imported fuel was cheaper than that offered by the Dangote refinery. A comparison of prices revealed that the Dangote Petroleum Refinery sells Premium Motor Spirit (PMS) at rates ranging from N1,015 to N1,028 per litre. In contrast, marketers hinted at their intention to import fuel to sell at lower prices, potentially taking advantage of the competition. However, Dangote has countered these assertions, insisting that those able to sell fuel cheaper than its prices must be engaging in collaboration with international traders to sell substandard products, diluting the quality and reliability expected from domestic producers.
The refinery has adamantly stated that its pricing benchmarks are aligned with international market standards. They have denied the allegations from various marketing associations and characterized their price ranges as competitive. Dangote argues that if any entity claims to have landed PMS at prices below their quoted figures, they are likely resorting to importing inferior products, which compromises consumers’ health and the lifespan of vehicles operating on these fuels. They also indicated that the establishment of a depot adjacent to their operations further complicates the challenge by attempting to introduce low-quality products into Nigeria’s fuel market, which undermines efforts to promote robust local refiners.
The Dangote Group has further pointed out a troubling aspect concerning the oversight of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), the agency responsible for ensuring fuel quality. According to Dangote, the NMDPRA lacks adequate laboratory facilities necessary for the effective detection of substandard products being imported into the country. This deficiency raises serious questions about the agency’s capability to safeguard against compromised fuel entering the domestic market, thereby endangering public safety and hampering the development of Nigeria’s refining industry.
In the wake of deregulation, the Dangote refinery announced its petrol pricing strategy, which consists of offering petrol at N960 per litre for shipments and N990 per litre for truck deliveries—rates that are lower than other competitors in the market, including the Nigerian National Petroleum Company Limited (NNPC). Notably, while NNPC has set their prices at N971 for ship sales and the same N990 for truck sales, Dangote’s strategic pricing reflects a commitment to not just competitiveness but also to supporting the country’s economic interests. This pricing approach aims to assure consumers of access to high-quality domestically refined petroleum products.
Finally, Chiejina reiterated the importance of protecting local industries to stimulate economic growth and job creation, drawing parallels with international practices in other nations. He argued that it is typical for countries to impose protective measures to bolster their domestic markets and industries, making a case for local support systems that can lead to economic prosperity. In light of the ongoing challenges presented by misleading claims and substandard products, the Dangote Group emphasizes the need for public vigilance against disinformation propagated by those who may benefit from a weakened local refining industry, positioning itself as a champion for quality, affordable fuel in Nigeria.
