Our products not substandard, says Dangote refinery

Dangote Industries Limited (DIL) has issued a robust rebuttal to online allegations casting doubt on the quality of its diesel products.

Anthony Chiejina, spokesperson for the company, refuted these claims in a statement released on Friday, categorically dismissing accusations of producing high-sulfur diesel as “mischievous.”

He emphasized that DIL’s refined diesel surpasses imported variants by an impressive 80%, underscoring a commitment to maintaining the highest standards and integrity in their products.

Reports had circulated online, quoting Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), suggesting that local refineries, including the Dangote refinery, were producing substandard products compared to imports.

Dangote Industries refuted these allegations, labeling them as false and baseless. The company emphasized that its refinery is built to produce high-quality petroleum products that comply with stringent international standards.

Chiejina stated, “The allegations that the Dangote Refinery produces substandard diesel and thus reduced prices by 37% are unfounded and malicious. Historically, Nigeria imported diesel with sulfur content as high as 7,000 parts per million (ppm). Our diesel has significantly lower sulfur levels, making it superior to imports. The reduction in price is unrelated to quality and instead reflects market dynamics and our commitment to the nation.”

Chiejina further debunked claims that medium-sulfur diesel is unsuitable for on-road use, pointing out that if this were true, equipment would have been damaged over the past 20 years due to high-sulfur imports. He also noted that high-sulfur diesel imports were previously sold at higher prices, questioning why lower prices were not seen until Dangote began operations.

He clarified that the price reduction was driven by market factors and a sense of national duty.

Accusations Against NMDPRA and IOCS

In June, Dangote management accused NMDPRA of facilitating the importation of substandard diesel and jet fuel. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries, criticized the regulator’s indiscriminate licensing, which allowed inferior products into the Nigerian market. Edwin noted that despite Dangote’s compliance with ECOWAS standards, licenses were still issued for importing high-sulfur petrol from Russia, often dumped into the Nigerian market following restrictions by the US and UK.

Additionally, Dangote accused International Oil Companies (IOCs) of manipulating prices to undermine the refinery’s market position.