Dangote Refinery Says Its 5.6% PMS Price Cut Is Responsible for Lower Pump Prices
…Not Tariff Suspension
By Patience Ikpeme
Dangote Petroleum Refinery has rejected claims that the recent drop in pump prices across the country was driven by the Federal Government’s suspension of the 15 per cent import tariff on Premium Motor Spirit (PMS) and diesel, insisting that the reduction resulted solely from its own pricing decisions.
In a statement issued on Sunday, the company said its attention had been drawn to “a series of misleading publications” suggesting that marketers reduced pump prices because the government halted the tariff. Dangote described the reports as “entirely false, deliberately misleading, and inconsistent with actual market dynamics.”
The refinery stressed that the only factor that influenced pump price reductions was its November 6 adjustment of PMS prices at its gantry and coastal loading points. “For the avoidance of doubt, the factor that prompted the price adjustment was our own reduction of PMS gantry and coastal prices on November 6,” the statement said. “The subsequent change in pump prices is now being wrongly attributed to a tariff decision in an attempt to distort the facts and misinform the public.”
Dangote Refinery said it cut its gantry price of PMS from N877 to N828 per litre, representing a 5.6 per cent reduction, while the coastal price fell from N854 to N806 per litre. It noted that this information was publicly issued through major media houses, including The Punch, Vanguard, The Cable, Daily Trust, The Sun, The Street Journal, Petroleumprice.ng, New Telegraph, and Business Hallmark.
“These changes were publicly announced… and were implemented well before marketers adjusted their pump prices,” the company stated.
The refinery added that the suspension of the 15 per cent import tariff had already been approved by President Bola Ahmed Tinubu on October 21, but had not been implemented at the time Dangote made its price cuts. “Despite the non-implementation of the tariff, we reduced the price of our products,” the statement said.
Describing the cut as part of its corporate responsibility, the company said its decision “aligns with our long-standing commitment to ensuring Nigerians enjoy the full benefits of domestic refining.” It noted that since commencing operations, it had reduced product prices more than seven times and absorbed logistics costs during festive periods to achieve nationwide price parity. It also claimed it had played a key role in ending “the perennial and artificial fuel scarcity typically associated with the ember months.”
Responding to claims that imported fuel is cheaper, Dangote insisted that foreign products—often of lower quality—are sold at higher prices. “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,” it said.
The company warned that the continued importation of substandard petroleum products amounts to economic dumping, comparing the situation to the collapse of Nigeria’s textile industry. “Nigeria has witnessed the devastating consequences of such unchecked dumping before,” the statement said.
Affirming its long-term commitment, Dangote Refinery said it remains firm despite the actions of speculative importers. “We are not moved by the short-term tactics of speculative importers who enter and exit the market at will,” it stated. “With a long-term investment exceeding $20 billion, we are steadfastly committed to Nigeria’s energy sector and remain unfazed by temporary policy shifts.”
The refinery assured Nigerians that it would continue supplying internationally benchmarked products at competitive prices. “Our operations continue to moderate prices in the market, ensuring Nigerian consumers receive genuine value for money,” it added.
Dangote also urged stakeholders and media organisations to prioritise accurate reporting. “We encourage all stakeholders and media organisations to report responsibly and rely on verified information in the interest of the Nigerian public.”
The company reiterated its pledge to operate with “integrity, transparency, and an unwavering commitment to Nigeria’s energy security.”
