The recent decline in petrol prices at filling stations across Nigeria has been a subject of speculation, with some analysts linking the adjustment to the Federal Government’s suspension of the 15 per cent import tariff on Premium Motor Spirit (PMS).
However, Dangote Petroleum Refinery has categorically dismissed these claims, insisting that the price reduction is solely a result of the company’s own downward review of PMS gantry and coastal prices.
In a detailed statement issued on Monday, the $20 billion refinery clarified that it had reduced its gantry price from N877 to N828 per litre and coastal price from N854 to N806 per litre on November 6, days before marketers altered retail prices.
According to Dangote Refinery, circulating reports connecting the drop in pump prices to tariff adjustments are “misleading” and “deliberately crafted to confuse the public.”
“This narrative is entirely false, deliberately misleading, and inconsistent with actual market dynamics,” the statement read.
“The factor that prompted the price adjustment was our own reduction of PMS gantry and coastal prices on November 6.
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’s Role in PMS Price Adjustment
The refinery emphasized that its decision was guided by a commitment to ease the financial burden on Nigerian consumers and stabilize the downstream sector.
By implementing a 5.6 per cent reduction in gantry and coastal prices, Dangote Petroleum has proactively influenced market rates, ensuring that marketers follow suit in updating pump prices.
“Any suggestion that pump prices fell because the 15 per cent import tariff was reversed is entirely false,” the refinery noted.
It further highlighted that the reduction occurred despite President Bola Tinubu’s approval of the tariff for implementation on October 21, which had not yet been enforced.
Dangote Refinery added that its pricing adjustments were widely reported across major media platforms, well before marketers implemented corresponding pump price reductions.
Federal Government’s Tariff Controversy
Earlier this month, the Federal Government approved a 15 per cent import duty on petrol.
The decision sparked resistance from independent marketers, who warned that the levy would inevitably increase pump prices for consumers.
While the government subsequently suspended the tariff, some commentators mistakenly attributed the recent reduction in fuel prices to this policy reversal.
Dangote Petroleum insists that such claims are inaccurate and reflect attempts by “speculative importers” to manipulate market perceptions.
The refinery stressed that its own price adjustments—not policy changes—have been the primary driver behind recent decreases in petrol costs at the pump.
Contribution to Market Stability
Since beginning operations, Dangote Refinery has actively worked to stabilize Nigeria’s PMS market.
The company has reduced prices more than seven times and often absorbs logistics costs to ensure uniform pricing across the country, particularly during the festive “ember months,” when shortages traditionally drive up fuel costs.
“Contrary to insinuations, imported products, many of which do not meet acceptable standards, are being sold at higher pump prices than our internationally-benchmarked products,” the refinery said.
It described the influx of lower-quality imported fuel as “dumping,” a practice previously linked to the collapse of major industries such as Nigeria’s textile sector.
The refinery also warned that opportunistic traders entering and exiting the market at will could disrupt pricing stability.
Dangote emphasized its commitment to operating with integrity and transparency, maintaining a focus on energy security, and supplying high-quality, competitively priced petroleum products to Nigerians.
Industry-Wide Implications
Analysts note that Dangote Petroleum’s decisive pricing actions reflect a broader shift toward a domestically driven fuel supply system.
By reducing PMS prices independent of government tariff interventions, the refinery has demonstrated that robust local production can mitigate the impact of fluctuating policy measures on consumers.
Market stakeholders, including independent marketers, are being urged to rely on verified information from reputable sources to avoid misinforming the public.
Misrepresentation of market dynamics, according to Dangote Refinery, threatens the stability of Nigeria’s emerging energy infrastructure and undermines confidence in domestic refineries.
Dangote’s Long-Term Commitment
The refinery reiterated its unwavering focus on long-term investment in Nigeria’s energy sector. With a $20 billion facility, Dangote Petroleum continues to prioritize nationwide supply reliability, quality assurance, and affordable pricing.
The company’s proactive measures are intended not only to protect consumers but also to reinforce the country’s energy security and reduce reliance on substandard imported fuel.
Dangote Refinery’s statement concluded by reaffirming the company’s stance: it will continue to operate with transparency and uphold high standards, ensuring that the benefits of local refining capacity are realized by Nigerian consumers and businesses alike.
Industry watchers expect that Dangote Petroleum’s approach will set a precedent for domestic refiners, encouraging market-driven solutions that are less dependent on government tariffs.
As Nigeria’s petroleum infrastructure evolves, locally produced, quality-controlled fuel will likely play a greater role in stabilizing prices and safeguarding the economy from speculative disruptions.
By proactively reducing gantry and coastal prices and discouraging misinformation linking the adjustment to tariff policies, Dangote Petroleum Refinery is positioning itself as a critical stabilizer in Nigeria’s downstream oil sector.
Its commitment to sustainable operations signals a positive shift toward reliable, affordable fuel supply, directly benefiting consumers and the broader economy.
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