Dangote Refinery Attributes Petrol Price Reduction to Domestic Strategy, Disputes Tariff Reversal Impact

The Dangote Petroleum Refinery has asserted that the recent decline in Premium Motor Spirit (PMS) pump prices resulted directly from its own strategic price reduction, countering widespread speculation that the change was influenced by the temporary suspension of a 15% import tariff. In an official statement released Monday, the refinery clarified that oil marketers’ downstream pricing adjustments were prompted by its November 6 decision to lower ex-depot fuel rates.

According to the refinery’s account, it proactively reduced PMS gantry prices from ₦877 to ₦828 per litre and coastal prices from ₦854 to ₦806, with market reactions following these adjustments. The company emphasized that its pricing model prioritizes supplying high-quality refined products at competitive rates, leveraging advantages derived from local production, operational scale, and decreased import reliance.

The statement follows last week’s announcement by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) suspending the proposed 15% ad-valorem import duty on PMS and Automotive Gas Oil (diesel). The NMDPRA reiterated the adequacy of national fuel supplies despite rising seasonal demand.

Notably, the Dangote Refinery had previously expressed support for the import duty as a protective measure for domestic refiners against product dumping. The facility reported current loading capacities of approximately 45 million litres of petrol and 25 million litres of diesel daily, confirming collaboration with regulators to ensure nationwide distribution.

The tariff suspension has elicited divergent reactions across the industry. The Centre for the Promotion of Private Enterprise (CPPE) has urged immediate reinstatement of the levy, warning that its removal threatens Nigeria’s refining sector, investor confidence, and long-term energy security. Conversely, other industry stakeholders have welcomed the policy suspension.