Dangote Industries Refutes Claims of Producing Substandard Diesel, Defends Product Quality
Dangote Industries Limited (DIL) has strongly refuted recent online reports alleging that the company’s diesel products are of inferior quality compared to imports.
The company asserts that its refined diesel is 80 percent superior to those currently imported into Nigeria.
In a statement released by the company’s spokesperson, Anthony Chiejina, on Friday, Dangote Industries Limited denounced the claims of producing high-sulfur diesel as “mischievous and aimed at tarnishing our reputation.”
Reports circulating online, allegedly made by NMDPRA CEO Farouk Ahmed, suggested that local refineries, including the Dangote refinery, produce inferior products compared to imported ones.
Reacting to these claims, Dangote described the allegations as false, baseless, and malicious.
“The false and misleading allegations made by some media outlets that the Dangote Refinery is producing substandard diesel which is why it reduced the price by 37 percent are baseless and mischievous,” Chiejina stated.
“Until late last year, diesel imports into Nigeria contained up to 7,000 parts per million (ppm) of sulfur, which has been ongoing for many years. Our diesel is produced at significantly lower levels of sulfur.
“Therefore, we find the allegation that the reason for the reduction is linked to quality baseless. What we are producing is 80 percent of what is being imported into the country.”
Chiejina further clarified that the notion that Medium Level Sulfur diesel is meant for off-road use is completely false.
“This would have invariably meant that all the imports for the last 20 years have been damaging equipment,” he added.
“Thirdly, diesel imports for the high-sulfur grade have been at significantly higher prices until we started operations. If indeed high-sulfur diesel is sold at lower prices, how come we never saw the lower prices until now?” Chiejina questioned.
He emphasised that the real reason behind the Dangote diesel price reduction is due to the company’s patriotic commitment to the nation as well as prevailing market dynamics of supply and demand.
In June, the management of Dangote Refinery accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of aiding the importation of “dirty” diesel and jet fuel into the country.
Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, stated that the regulator’s indiscriminate licensing allows inferior products into Nigeria.
Edwin noted that despite Dangote’s efforts to meet ECOWAS standards, the authority issues licenses to traders to import high-sulfur petrol from Russia.
He explained that since the US and UK have issued caps on Russia’s petroleum products, these products are now being dumped into Nigeria’s market by various traders.
Additionally, the leadership of the mega refinery accused International Oil Companies (IOCs) of price manipulation, aimed at undermining and sabotaging the refinery in the market.
Dangote Industries Limited remains firm in its stance that its products meet international standards and vows to continue its efforts in providing high-quality petroleum products to the Nigerian market.
