News
Dangote Refinery: Fuel Price Cut Not Connected With FG’s Suspension Of 15% Import Tariff
The Dangote Petroleum Refinery on Monday said the recent reduction in fuel pump prices by oil marketers had no connection with the federal government’s reversal of the 15 percent import tariff on petrol and diesel.
The 650,000-barrel-per-day facility located in Lagos stressed that the narratives were entirely false, deliberately misleading, and inconsistent with actual market dynamics, stating that it adjusted prices before the decision to suspend the implementation of the policy.
For the avoidance of doubt, it stated that the factor that prompted the price adjustment was its own reduction of petrol gantry and coastal prices on November 6, rejecting the notion that the subsequent change was attributable to a tariff decision.
In a statement made available to journalists, the Dangote refinery noted that reports that the reduction in pump prices was driven by the suspension of the 15 percent import tariff was therefore incorrect.
Nigeria’s recent suspension of the planned 15 percent duty on imported petrol and diesel marked a significant retreat from a policy that was designed to reshape the downstream market. Dangote had hailed the move.
The duty, meant to take effect after a 30-day transition period, was introduced as part of an attempt to protect emerging local refining capacity, narrow the cost gap between domestic production and imports, and gradually steer the country toward energy self-sufficiency.
But days later the federal government stepped back, announcing that the levy was ‘no longer in view’, and stressing the need to avoid a sudden rise in pump prices that could spill into inflation and deepen economic discomfort.
“To reiterate, Dangote Petroleum Refinery, on November 6, reduced its PMS gantry price from N877 to N828 per litre, representing a 5.6 per cent decrease, and its coastal price from N854 to N806 per litre.
“These changes were publicly announced across major media platforms, including, but not limited to, The Punch, Vanguard, The Cable, Daily Trust, The Sun, The Street Journal, Petroleumprice.ng, New Telegraph, Business Hallmark, and several others, and were implemented well before marketers adjusted their pump prices.
“The claim that the reduction in pump prices was driven by the suspension of the 15 percent import tariff is therefore incorrect. The import tariff had received the approval of His Excellency, President Bola Ahmed Tinubu, GCFR, 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 long-standing commitment to ensuring Nigerians enjoy the full benefits of domestic refining,” the refinery’s management stated.
It added that since commencing operations, it had 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, it stated that 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 labor,” it added.
The Dangote Petroleum Refinery said it remains fully committed to supplying high-quality, internationally benchmarked petroleum products at competitive prices, stressing that its 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 organizations to report responsibly and rely on verified information in the interest of the Nigerian public,” it stated.
