Dangote refinery sets fuel price at N990

Dangote Refinery Refutes Claims, Asserts Its Fuel Prices Are Competitive and of Higher Quality

In response to claims that its premium motor spirit (PMS), or petrol, is more expensive than imported fuel, Dangote Refinery has clarified that its product is competitively priced and of higher quality. This statement follows assertions from the Independent Petroleum Marketers’ Association of Nigeria (IPMAN) suggesting that imported fuel is cheaper than Dangote’s.

Yakubu Suleiman, the national assistant secretary of IPMAN, recently mentioned in a television interview that IPMAN’s members would prefer to buy from cheaper sources. He implied that unless Dangote’s prices are lower, marketers would buy where profit margins are more favorable. “If Dangote has a product selling for N1,000, let’s assume, and there’s another place selling for N900, we can’t just say… we’ll instruct our members to buy there. We must go where the price is lower,” he said.

In response, Anthony Chiejina, Group Chief Branding and Communications Officer for Dangote Refinery, dismissed IPMAN’s comments as “misinformation.” He explained that Dangote’s pricing is based on international benchmarks, making it competitive compared to the cost of imports. The refinery sells PMS at N960 per litre for sale into ships and N990 for sale into trucks, which Chiejina says reflects an effort to provide quality fuel at a fair price in the domestic market.

Chiejina also pointed out that if other sources claim to land PMS at cheaper rates, they may be importing substandard products. He warned that this practice risks undermining local industry and could negatively impact the health of Nigerians and the lifespan of their vehicles. He added that the regulator, NMDPRA, lacks sufficient facilities to detect substandard fuel imports, potentially exposing the public to inferior products.

He further explained that, following deregulation, NNPC set the benchmark by selling PMS to local marketers at N971 per litre for sale into ships and N990 for trucks. Dangote’s refinery followed this pricing model but even lowered its price for sale into ships to N960 per litre. This decision, he said, was made in the interest of supporting the local market, despite uncertainties in the exchange rate for crude purchases.

The statement also addressed reports of an international trading company renting a depot near the Dangote Refinery to blend and distribute substandard products. Chiejina warned that such practices harm the development of domestic refining in Nigeria. He emphasized that many countries protect their industries to create jobs and support economic growth, citing the U.S. and Europe’s protective tariffs on EVs and microchips as examples.

In closing, Chiejina reiterated Dangote Refinery’s commitment to supplying affordable, high-quality, locally refined petroleum products to Nigeria and urged the public to ignore disinformation spread by parties favoring imports over domestic production.