Dangote Group has raised an allegation that an international oil company (IOC) has acquired a depot next to it for the purpose of blending substandard petroleum products to be sold in the Nigerian market.
The Group Chief Branding and Communications Officer, Dangote Group, Mr. Anthony Chiejina, stated this in a press release disseminated on Sunday as Dangote refinery debunked claims that premium motor spirit (PMS) could be imported at cheaper rate than the N990/ litre truck price.
Africa’s largest refinery, however, described the planned blending of substandard PMS in the country as detrimental to the growth of domestic refining in Nigeria, even as it is intended to compete with its quality refined products.
Dangote Group maintained that it is not unusual for countries to protect their domestic industries in order to provide jobs and grow the economy, noting that the US and Europe have had to impose high tariffs on EVs and microchips in order to protect their domestic industries.
Part of the statement read: “We had lately refrained from engaging in media fights but we are constrained to respond to the recent misinformation being circulated by Independent Petroleum Marketers Association of Nigeria (IPMAN), Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN), and other associations.
“Both organisations claim that they can import PMS at lower prices than what is being sold by the Dangote Refinery. We benchmark our prices against international prices and we believe our prices are competitive relative to the price of imports.
“If anyone claims they can land PMS at a price cheaper than what we are selling, then they are importing substandard products and conniving with international traders to dump low quality products into the country, without concern for the health of Nigerians or the longevity of their vehicles.”
Dangote also lamented that the petroleum industry regulator, Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) does not have laboratory facilities which can be used to detect substandard products when imported into the country.
“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.
“In good faith, and in the interest of the country, we commenced sales at these prices without clarity on the exchange rate that we will use to pay for the crude purchased.
“While we continue with our determination to provide of affordable, good quality, domestically refined petroleum product in Nigeria, we call on the public to disregard the deliberate disinformation being circulated by agents of people who prefer for us to continue to export jobs and import poverty,” it added.
