Dangote Industries Limited (DIL) has condemned an online report criticizing the quality of its products, asserting that its refined diesel is 80% superior to those currently imported into Nigeria.
In a statement released by the company’s spokesperson, Anthony Chiejina, on Friday, DIL labeled the claims of producing high-sulfur diesel as “mischievous and aimed at tarnishing our reputation.”
The reports in question, attributed to NMDPRA CEO Farouk Ahmed, suggest that local refineries, including the Dangote refinery, produce inferior products compared to imports. In response, Dangote refuted these allegations as false, baseless, and mischievous.
The spokesperson emphasized that the refinery is designed to produce high-quality petroleum products that meet stringent international standards. “The false and misleading allegations that the Dangote Refinery is producing substandard diesel, which led to a 37% price reduction, are baseless and mischievous.
Until late last year, diesel imports into Nigeria contained up to 7,000 parts per million (ppm) of sulfur, a practice that had persisted for many years. Our diesel currently has significantly lower sulfur levels, so the claim that the price reduction is linked to quality is unfounded. Our product quality is 80% of what is being imported into the country,” Chiejina stated.
He also dismissed the assertion that medium-level sulfur diesel is intended for off-road use as completely false, which would imply that imports over the past 20 years have been damaging equipment. Additionally, he noted that high-sulfur diesel imports had higher prices until Dangote started operations, questioning why lower prices weren’t observed before if high-sulfur diesel was indeed cheaper.
Chiejina affirmed that the real reason for Dangote’s diesel price reduction was due to the management’s patriotism and prevailing market dynamics of supply and demand.
In June, Dangote Refinery management accused NMDPRA of facilitating the importation of “dirty” diesel and jet fuel into the country. Devakumar Edwin, Vice President of Oil and Gas at DIL, blamed the regulator’s indiscriminate licensing for allowing inferior products into Nigeria.
He explained that, despite Dangote’s efforts to meet ECOWAS standards, the authority licenses traders to import high-sulfur petrol from Russia. Since the US and UK imposed caps on Russia’s petroleum products, these products are now being dumped in Nigeria by various traders. Furthermore, the leadership of the refinery accused International Oil Companies (IOCs) of price manipulation aimed at undermining and sabotaging the refinery in the market.
