Real reasons for petrol price reduction

Dangote Petroleum Refinery on Monday dismissed claims that the recent reduction in pump prices by oil marketers is a consequence of the federal government’s reversal of the 15 per cent import tariff.

In a statement, signed by its management on Monday, the refinery attributed the price adjustment to its own reduction of petrol gantry and coastal prices on 6 November.

Last Thursday, the Nigerian government said the implementation of a 15 per cent import duty on petrol and diesel, approved by President Bola Tinubu, in October is “no longer in view”.

Essentially, the tariff would have ensured that imported petrol is not cheaper than that of the Dangote refinery, which produces virtually all of Nigeria’s locally produced petrol.

The policy raised concerns across the oil and gas sector, with stakeholders, energy experts and civil society groups warning it would lead to higher fuel prices and worsen the country’s economic situation.

Following the approval, at the time, Dangote refinery, the largest oil refiner in the West African country, said there was no need for petrol import, adding that it produces enough petrol and diesel for local consumption.

Last Friday, some filling stations in Abuja reduced petrol pump prices to N940 and N949 per litre respectively, down from N955, with the National Public Relations Officer, Independent Petroleum Marketers Association of Nigeria (IPMAN), linking the drop to the government’s suspension of the import duty.

However, Dangote Refinery says its own price reduction is the reason for the adjustment.

“Dangote Petroleum Refinery, on November 6, reduced its Premium Motor Spirit (PMS) gantry price from N877 to N828 per litre, representing a 5.6 per cent decrease, and its coastal price from N854 to N806 per litre. These changes were publicly announced across major media platforms and implemented before marketers adjusted their pump prices.

“The claim that the reduction in pump prices was driven by the suspension of the 15 per cent import tariff is therefore incorrect,” the statement said.

The refinery emphasised that its decision was not influenced by the import tariff, which had received presidential approval on 21 October, noting that it has reduced prices over seven times since commencing operations and absorbed logistics costs to ensure nationwide price uniformity.

“Contrary to repeated claims by certain interests, imported products which are often below acceptable standards have consistently been sold at higher pump prices than the premium-grade fuel supplied by Dangote Refinery. The continued importation of substandard fuel constitutes dumping, a harmful practice that undermines economic growth and industrial development.”

READ ALSO: Dangote Refinery ends suit against issuance of petrol import licences amid new import tariff

The refinery said it remains fully committed to supplying high-quality, internationally benchmarked petroleum products at competitive prices.

“Our operations continue to moderate prices in the market, ensuring Nigerian consumers receive genuine value for money. We are not moved by the short-term tactics of speculative importers who enter and exit the market at will.

“With a long-term investment exceeding $20 billion, we are steadfastly committed to Nigeria’s energy sector and remain unfazed by temporary policy shifts. Our focus is clear: to deliver reliable, high-quality, and competitively priced fuel to all Nigerians,” it said.

On Sunday, the Centre for the Promotion of Private Enterprise (CPPE) warned that Nigeria’s suspension of the 15 per cent import duty could weaken domestic refining, hurt investor confidence and raise pressure on the naira.