Dangote Industries Limited (DIL) has strongly refuted an online report criticizing the quality of its refined products, asserting that its diesel is 80% superior to imported alternatives. In a statement on Friday, company spokesperson Anthony Chiejina dismissed claims of producing high-sulfur diesel as “mischievous and aimed at tarnishing our reputation.”
The controversy arose from comments by NMDPRA CEO Farouk Ahmed, suggesting that local refineries, including Dangote’s, produce inferior products compared to imports. Dangote Industries responded firmly, labelling these accusations as false and baseless.
Chiejina emphasized that the Dangote Refinery is designed to produce top-quality petroleum products that adhere to strict international standards. He stated, “The false and misleading allegations that the Dangote Refinery is producing substandard diesel, leading to a 37% price reduction, are baseless and mischievous.” He explained that until late last year, Nigeria imported diesel with sulfur levels up to 7,000 parts per million (ppm), whereas Dangote’s diesel has significantly lower sulfur content.
Rebutting Misconceptions
Chiejina addressed several inaccuracies in the circulating reports:
- Sulfur Levels: The claim that Medium Level Sulfur diesel is meant for off-road use is false. He argued that if this were true, it would imply that all imports over the past 20 years have been damaging equipment.
- Price Dynamics: The assertion that high-sulfur diesel is sold at lower prices is incorrect. Until Dangote started operations, high-sulfur diesel was priced significantly higher. The current price reduction, he explained, is due to management’s patriotic commitment and market dynamics of supply and demand.
In June, Dangote Refinery management accused the NMDPRA of facilitating the importation of “dirty” diesel and jet fuel into Nigeria. Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, blamed the regulator’s indiscriminate licensing for the influx of inferior products. He noted that despite Dangote’s adherence to ECOWAS standards, the authority permits traders to import high-sulfur petrol from Russia, which is now restricted in the US and UK and subsequently dumped in Nigeria.
Additionally, Dangote’s leadership accused International Oil Companies (IOCs) of price manipulation, attempting to undermine and sabotage the refinery’s market presence.
