By DAYO ADESULU
Dangote Petroleum Refinery has pushed back strongly against claims suggesting pricing disputes or market withdrawals, insisting that the utilisation of locally refined Premium Motor Spirit (PMS) has helped stabilise supply and drive more competitive pump prices across Nigeria.
In a detailed clarification, the refinery stressed that domestically refined petrol remains significantly cheaper than imported alternatives, reinforcing the economic logic behind the Federal Government’s push for local refining and reduced dependence on foreign fuel supplies.
Locally Refined PMS Driving Competitive Pricing
According to Dangote Refinery, the increasing circulation of locally refined PMS has directly contributed to more competitive retail pricing nationwide. The company explained that its products are priced below imported fuel, largely because domestic refining eliminates major cost drivers such as international freight charges, foreign exchange exposure, and port-related levies.
The refinery dismissed reports claiming that petroleum marketers had withdrawn from lifting its products due to pricing concerns. Instead, it maintained that its ex-gantry prices remain competitive, market-responsive, and firmly aligned with import parity indicators, while also complying fully with regulatory and quality benchmarks.
Industry analysts note that import parity pricing—used as a benchmark in Nigeria’s downstream sector—allows locally refined products to remain competitive without undercutting market stability. Dangote Refinery said its pricing structure follows this model, ensuring fairness, sustainability, and transparency.
Marketers’ Withdrawal Claims “Misleading”
Responding directly to speculation that marketers avoided Dangote PMS due to unfavourable pricing, the refinery described such claims as misleading and disconnected from market realities.
It emphasised that demand for locally refined PMS remains strong, particularly as marketers increasingly recognise the long-term benefits of domestic sourcing, including predictable supply timelines and reduced exposure to foreign exchange volatility.
“Locally refined products offer a more stable cost base than imports,” industry sources say, adding that the refinery’s pricing strategy reflects prevailing market conditions rather than arbitrary adjustments.
Explaining the November Surge in Petrol Imports
Dangote Refinery also addressed concerns over the sharp increase in petrol imports recorded in November, a development that had raised questions about the refinery’s supply capacity and market role.
According to the company, the import surge coincided with import licensing approvals granted by the former leadership of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA). These approvals reportedly sanctioned volumes that exceeded prevailing domestic demand at the time.
The refinery was emphatic that the spike in imports had no connection to its operational capacity or supply commitments, noting that it remained fully capable of meeting its obligations to the domestic market.
By clarifying the timeline, Dangote Refinery sought to separate regulatory import decisions from refinery operations, arguing that the two issues should not be conflated.
Regulatory Decisions and Market Distortion
Energy sector observers say excessive import licensing can distort the downstream market, particularly when domestic refining capacity is expanding. They argue that over-licensing imports may weaken incentives for local refining and undermine price stability.
Dangote Refinery’s explanation has therefore reignited conversations around the need for better coordination between regulators and domestic producers to ensure that import volumes reflect actual supply gaps rather than legacy policy decisions.
The refinery maintained that a balanced approach—one that prioritises domestic refining while allowing imports only when necessary—remains critical to achieving Nigeria’s long-term energy goals.
Commitment to Supply, Transparency, and Market Stability
Despite the controversy, Dangote Refinery reaffirmed its commitment to reliable supply, transparent pricing, and the orderly development of a competitive downstream petroleum market.
The company said it would continue to work closely with regulators, marketers, and other industry stakeholders to support Nigeria’s domestic refining agenda. This collaboration, it noted, is essential to conserving foreign exchange, moderating fuel prices, and strengthening national energy security.
By refining petroleum products locally, the refinery argued, Nigeria stands to reduce pressure on its foreign reserves while shielding consumers from global oil price shocks.
Bigger Picture for Nigeria’s Energy Security
The refinery’s statement comes at a time when Nigeria is recalibrating its energy strategy following subsidy reforms and renewed focus on market-driven pricing. Analysts say domestic refining capacity—anchored by large-scale projects like Dangote Refinery—will play a defining role in shaping fuel availability and affordability in the coming years.
With sustained utilisation of locally refined PMS, Nigeria could gradually transition from an import-dependent market to a more self-reliant downstream sector. However, experts caution that regulatory alignment and disciplined import controls remain vital to achieving this transition smoothly.
Looking Ahead
Dangote Refinery concluded by reiterating that its operations are geared toward long-term national interest rather than short-term market speculation. As debates around petrol pricing, imports, and regulation continue, the refinery’s position underscores a broader industry message: local refining is not the problem, but part of the solution.
For consumers, policymakers, and market players alike, the unfolding conversation highlights the need for coherent policies that reward domestic production, ensure fair competition, and ultimately deliver affordable fuel to Nigerians.
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