Sunday, November 3, 2024

Dangote Refinery Accuses Foreign Firm of Selling Substandard Fuel in Nigeria

 

Dangote Refinery has raised concerns over an international trading company allegedly setting up a depot near its facility to blend and distribute low-quality fuel products in Nigeria. The company claims this move is intended to compete unfairly with Dangote’s high-standard petrol products, potentially undermining the domestic refining sector.

In a statement issued by the refinery’s Group Chief Branding and Communications Officer, Anthony Chiejina, on Sunday, Dangote Refinery warned that this activity could harm the local economy. "An international trading company has recently hired a depot facility next to the Dangote Refinery, with the objective of using it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality production," the statement read. Chiejina emphasized that safeguarding domestic industries is critical, citing examples from the United States and Europe, where tariffs are imposed to protect local production in sectors such as electric vehicles and microchips.

This statement comes amid recent remarks from the Independent Petroleum Marketers Association of Nigeria (IPMAN) and the Petroleum Retail Outlet Owners Association of Nigeria (PETROAN), who have expressed dissatisfaction with Dangote Refinery’s fuel pricing. Dangote Refinery defended its pricing structure, insisting that its rates—N960 per liter for sales to ships and N990 per liter for trucks—are both competitive and aligned with global standards.

The refinery further accused those claiming to import cheaper PMS (Premium Motor Spirit) of engaging in unsafe practices by bringing in low-quality products. Dangote’s statement urged regulatory bodies and the public to prioritize high standards and warned of the risks associated with substandard imports.

The refinery reaffirmed its commitment to providing high-quality fuel to support the Nigerian economy, while calling on local stakeholders to back efforts to protect domestic refining operations.

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