• Friday, November 22, 2024
businessday logo

BusinessDay

International trading firm undercutting our refinery with substandard petrol – Dangote

Dangote Refinery starts petrol export to West African countries

Dangote Refinery has accused an unnamed international trading company of setting up a depot near its facility with the intent to blend and import substandard fuel.

The company claims this is a deliberate attempt to undercut its higher-quality products and harm Nigeria’s domestic refining industry.

In a statement on Sunday evening, Anthony Chiejina, the group’s chief branding and communications officer, expressed alarm over the implications of this facility being used to mix lower-quality fuels that could compete with Dangote’s premium offerings.

Read also: Any product cheaper than Dangote petrol is substandard – Dangote.

“The intent behind this operation appears to be the introduction of substandard products into the market, which not only threatens the health of Nigerians but also jeopardizes the integrity of their vehicles,” he stated.

Chiejina highlighted the serious risks associated with the importation of substandard PMS, asserting that any claims by other organizations of being able to import fuel at prices lower than Dangote’s are inherently suspicious. He warned that such practices may involve collusion with international traders to flood the market with low-quality fuel, undermining local refiners and consumer trust.

“Post deregulation, NNPC set the pace by selling PMS to domestic marketers at N971 per litre for sale into ships and at N990 for sale into trucks. This set the benchmark for our pricing, and we have even gone lower to sell at N960 per litre for sale into ships while maintaining N990 per litre for sale into trucks,” Chiejina said.

Read also: Dangote Refinery denies receiving payments from IPMAN, and urges direct supply registration.

Chiejina also complained about the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) for its inadequate capacity to test imported fuels, noting that the agency lacks the laboratory facilities necessary to identify substandard products. He emphasised the urgent need for regulatory measures to protect consumers and the domestic refining industry.

“While we remain committed to providing high-quality, affordable fuel for Nigerians, we urge the public to be vigilant and to disregard misinformation being circulated by those who prefer to sustain a reliance on imported products,” Chiejina concluded, calling for greater awareness of the potential dangers posed by substandard fuel in the marketplace.

As the situation develops, the Dangote Refinery continues to advocate for the protection of local industries and the promotion of economic growth through domestic refining.

Dipo Oladehinde is a skilled energy analyst with experience across Nigeria's energy sector alongside relevant know-how about Nigeria’s macro economy. He provides a blend of market intelligence, financial analysis, industry insight, micro and macro-level analysis of a wide range of local and international issues as well as informed technical rudiments for policy-making and private directions.

Join BusinessDay whatsapp Channel, to stay up to date

Open In Whatsapp