Dangote Refinery Denies Claims Linking Fuel Price Drop to Tariff Suspension

Dangote Petroleum Refinery has rejected claims that the recent decline in petrol pump prices by oil marketers was caused by the Federal Government’s suspension of the 15 per cent import tariff on petroleum products.

In a statement released on Monday, the company called the reports “false, misleading, and inconsistent with actual market dynamics,” emphasizing that the reduction in pump prices stemmed directly from its own earlier price adjustments.

The refinery said it lowered its Premium Motor Spirit (PMS) gantry price from N877 to N828 per litre and its coastal price from N854 to N806 per litre on November 6, marking a 5.6 per cent reduction.

“These price changes were publicly announced across major media outlets and clearly predated the adjustments made by marketers,” the statement read. The company stressed that, “despite the tariff not being implemented, we proceeded with the price cut as part of our commitment to ensuring Nigerians benefit from domestic refining.”

Since beginning operations, Dangote noted that it has reduced fuel prices more than seven times and has absorbed logistics costs to maintain uniform pricing across the country, particularly during peak festive periods.

The refinery also criticised the continued importation of substandard fuel into Nigeria, describing the practice as “dumping” that undermines the economy and recalls the decline of the nation’s textile sector, once a major source of employment.

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Dangote reiterated its commitment to supplying high-quality, competitively priced petroleum products while calling on stakeholders to rely on verified information to avoid misleading the public.

“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 Tinubu, as far back as October 21 for immediate implementation.

“Despite the non-implementation of the tariff, we reduced the price of our products. As a socially responsible company, this decision, which was not affected by whether the tariff was implemented or not, aligns with our longstanding commitment to ensuring Nigerians enjoy the full benefits of domestic refining.

“Since commencing operations, we have reduced prices on more than seven occasions, absorbed logistics costs to ensure nationwide price uniformity during festive periods, and played a major role in ending the perennial and artificial fuel scarcity typically associated with the ember months.

“Contrary to repeated claims by certain interests, imported products, which are often below acceptable standards have consistently been sold at higher pump prices than the premium-grade fuel supplied by Dangote Refinery.

“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.

“Dangote Petroleum Refinery remains fully committed to supplying high-quality, internationally benchmarked petroleum products at competitive prices. Our operations continue to moderate prices in the market, ensuring Nigerian consumers receive genuine value for money.

“We are not moved by the short-term tactics of speculative importers who enter and exit the market at will. With a long-term investment exceeding $20 billion, we are steadfastly committed to Nigeria’s energy sector and remain unfazed by temporary policy shifts. 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,” the statement read.