Dangote warns Nigerians about substandard fuel blending

The Dangote Petroleum Refinery has issued a warning to Nigerians regarding the operations of a new depot leased by an unnamed international trading company, which is reportedly blending substandard petroleum products in Nigeria.

This facility, located adjacent to the refinery, aims to produce inferior products that could be sold to unsuspecting consumers, potentially endangering public safety and undermining the local refining industry.

In a statement released on Sunday, Anthony Chiejina, the Group Chief Branding and Communications Officer of Dangote Group, expressed serious concerns over these activities, particularly in light of recent claims by the Independent Petroleum Marketers Association of Nigeria (IPMAN) and other groups asserting that imported fuel is available at lower prices than those set by the Dangote refinery.

Chiejina emphasized that any marketer offering petrol at prices below those of the Dangote refinery is likely dealing in substandard products, colluding with international traders to flood the Nigerian market with low-quality fuel.

The refinery’s current prices for Premium Motor Spirit (PMS) range from N1,015 to N1,028 per liter, depending on the purchase volume, which has led some dealers to consider importing petrol to undercut these rates.

The Dangote refinery refuted these claims, alleging that they reflect a strategy to undermine its high-quality output. The statement noted, “We have recently refrained from engaging in media fights but feel compelled to respond to the misinformation being spread by IPMAN, PETROAN, and other associations.”

The refinery argued that its pricing strategy is based on international benchmarks, asserting that its prices are competitive. It stated, “If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and colluding with international traders to dump low-quality products into the country.”

Additionally, Dangote criticized the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its inability to detect substandard products due to the lack of functional laboratory facilities.

In terms of pricing, the refinery recently adjusted its rates to N960 per liter for ship deliveries and N990 per liter for truck deliveries, following the deregulation of the petroleum sector.

The Nigerian National Petroleum Company Limited (NNPC) had set prices at N971 for ships and N990 for trucks, positioning Dangote’s prices as more competitive.

Chiejina further highlighted the importance of government support for local industries, drawing comparisons to protective measures taken by other countries, such as the U.S. and European nations, to bolster their domestic markets.

He called on the public to disregard what he described as “deliberate disinformation” from those wishing to see Nigeria continue exporting jobs while importing poverty.