The Dangote Petroleum Refinery has said the recent downward adjustment in the pump price of Premium Motor Spirit (PMS) by oil marketers was triggered solely by its own decision to reduce petrol prices earlier this month, not by the temporary reversal of the 15% import tariff as widely speculated.
In a statement on Monday seen by Nairametrics, the refinery explained that its November 6 move to cut ex-depot prices directly influenced marketers’ pricing decisions across the country.
According to the company, “the recent reduction in PMS pump prices by oil marketers was a direct response to our price cut on November 6. It was not caused by the temporary reversal of the 15% import tariff.”
The refinery noted that it lowered its PMS gantry price from N877 to N828 and its coastal price from N854 to N806, adding that marketers only adjusted their pump prices after those internal reductions were announced.
Dangote emphasised that its pricing policy is driven by a commitment to supply high-quality refined products at competitive rates, supported by the advantages of domestic refining, economies of scale, and reduced dependence on imports.
“We remain committed to delivering high-quality, competitively priced fuel and ensuring Nigerians enjoy the full benefits of domestic refining,” the statement added.
Backstory
Last week, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) announced the suspension of the proposed 15 per cent ad-valorem import duty on Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), commonly known as petrol and diesel.
The Authority made this known in a statement reassuring Nigerians that there is sufficient supply of petroleum products across the country despite the rising demand during the current peak season.
Earlier, Nairametrics reported that Dangote Petroleum Refinery has thrown its weight behind the federal government’s decision to impose a 15% ad-valorem import duty on petrol and diesel, describing it as a necessary measure to protect local refiners and curb the dumping of imported products.
The refinery said it currently has sufficient capacity to meet national demand, stating that it is loading about 45 million litres of petrol and 25 million litres of diesel daily, while working with regulatory agencies to ensure nationwide distribution.
What you should know
The decision to suspend the 15% import tariff has generated mixed reactions.
It warned that its removal threatens Nigeria’s refining sector, undermines investor confidence, and jeopardizes the country’s long-term economic and energy security objectives.
Other industry practitioners have welcomed the decision.
