The Dangote Refinery has stated that the recent drop in pump prices of Premium Motor Spirit (PMS), also known as petrol in Nigeria, by oil marketers was mainly driven by its reduction of gantry and coastal prices on November 6, not as a result of the suspension of the 15 per cent duty on imported petrol and diesel.
Pinnacle Daily had reported that the 650,000-barrel-per-day refinery announced a significant slash of its ex-depot price of petrol from N877 to N828 per litre and slashed the coastal price from N854 to N806 per litre earlier this month. The action reflected an N49 and N48 reduction for gantry and coastal prices, respectively.
In a statement released on Monday, the company described as “false” and “misleading” narratives attributing the drop in pump prices to the reversal of the 15 per cent import tariff.
The company said it had implemented the ex-depot price cut well before marketers adjusted their pump prices, insisting that it was “incorrect” to attribute it to the import tariff suspension.
“The claim that the reduction in pump prices was driven by the suspension of the 15 per cent import tariff is therefore incorrect. The import tariff had received the approval of His Excellency, President Bola Ahmed Tinubu, GCFR, as far back as October 21 for immediate implementation,” part of the statement read.
It said the decision to reduce prices was in line with its long-standing commitment to ensuring that Nigerians enjoy the full benefits of domestic refining and not influenced by whether the import tariff was implemented or not.
READ ALSO: Dangote Refinery Slashes Gantry Price of Petrol to ₦828/L as Competition Heightens
The refinery management said that since commencing operations, it has reduced prices on more than seven occasions and absorbed logistics costs to ensure nationwide price uniformity, especially during festive periods, adding that it has played a major role in ending the longstanding fuel scarcity usually associated with the ember months.
It further explained that contrary to claims by certain interests, there have been cases when imported substandard petroleum products were sold at pump prices higher than “the premium-grade” fuel supplied by Dangote Refinery.
It warned that “the continued importation of substandard fuel constitutes dumping, a harmful practice that undermines economic growth and industrial development. Nigeria has witnessed the devastating consequences of such unchecked dumping before, including the collapse of the once-thriving textile industry, which was a major employer of labour.”
READ ALSO: Experts, Marketers Differ on 15% Fuel Import Duty Suspension
While assuring that it remains fully committed to supplying high-quality and internationally benchmarked petroleum products at competitive prices, Dangote Refinery insisted that its operations have continued to moderate prices in the market for the benefit of Nigerian consumers.
READ ALSO: NNPCL, Marketers Drop Petrol Prices Below Dangote Partners’ Cost in Lagos
Referring to actions of its competitors, the company said it remains unfazed by what it described as “short-term tactics of speculative importers who enter and exit the market at will”, emphasising that with a long-term investment of over $20 billion, it remains committed to Nigeria’s energy sector. “Our focus is clear: to deliver reliable, high-quality, and competitively priced fuel to all Nigerians.
“Dangote Petroleum Refinery will continue to operate with integrity, transparency, and an unwavering commitment to Nigeria’s energy security. We encourage all stakeholders and media organisations to report responsibly and rely on verified information in the interest of the Nigerian public,” it added.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in Mass Communication. He can be reached via @VICTOREZEJA on X
