Dangote Refinery denies tariff suspension influence on petrol price cut, says reduction was self-driven

Dangote Refinery denies tariff suspension influence on petrol price cut, says reduction was self-driven

The Dangote Refining and Petrochemical Company has dismissed claims that the recent drop in petrol pump prices was triggered by the Federal Government’s suspension of a 15% import tariff on PMS, insisting that the adjustment resulted solely from the refinery’s downward review of ex-depot prices.

In a statement issued on Monday, the refinery described reports linking the lower prices to tariff policy changes as “misleading” and “inconsistent with market realities.”

According to the company, marketers only reduced pump prices after Dangote reviewed its gantry and coastal prices on November 6 — days before the tariff suspension became public.

“The factor that prompted the price adjustment was our reduction of PMS gantry and coastal prices on November 6. Any narrative suggesting that pump prices fell because the 15 per cent import tariff was reversed is entirely false,” the statement read.

The refinery confirmed that it reduced its PMS gantry price from ₦877 to ₦828 per litre and its coastal price from ₦854 to ₦806 per litre, representing a 5.6% decrease — a move publicly announced across major media outlets ahead of marketers’ pricing decisions.

Dangote noted that President Bola Tinubu had approved the 15% levy on October 21, yet the refinery still cut prices “to ease pressure on consumers and support price stability in the downstream sector.”

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The company accused some commentators and “speculative importers” of deliberately distorting facts to undermine confidence in the emerging domestically driven fuel supply system.

Dangote further stressed that since commencing operations, it has reduced fuel prices more than seven times, often absorbing logistics costs to maintain nationwide uniform pricing, especially during festive periods.

The refinery also criticised the influx of imported fuel, saying much of it fails quality standards and is sold at higher rates than its internationally benchmarked products.

It warned that dumping substandard petrol could harm Nigeria’s energy sector the same way it damaged the textile industry.

Despite policy uncertainties, the $20bn refinery said it remains committed to energy security, price stability, and the delivery of high-quality petroleum products.

Meanwhile, the Centre for the Promotion of Private Enterprise (CPPE) has warned that suspending the 15% import duty poses significant risks to Nigeria’s refining sector and long-term industrial development.
CPPE CEO, Dr. Muda Yusuf, argued that the policy could undermine domestic refinery investments and expose the economy to renewed forex pressure and job losses.

Dangote, however, reiterated that its November 6 price review — not tariff suspension — triggered the recent petrol pump price reduction nationwide.

Dangote Refinery denies tariff suspension influence on petrol price cut, says reduction was self-driven