Dangote Refinery: PMS Price Cut, Not Tariff Suspension, Responsible for Lower Pump Prices

Dangote Refinery: PMS Price Cut, Not Tariff Suspension, Responsible for Lower Pump Prices

Dangote Petroleum Refinery has dismissed reports linking the recent reduction in petrol pump prices to the Federal Government’s suspension of the 15 per cent import tariff on Premium Motor Spirit (PMS) and diesel, describing the claims as misleading and inconsistent with market realities.

In a statement, the company said the downward adjustment in pump prices was triggered solely by its own reduction of PMS gantry and coastal prices on November 6, not by any government tariff decision.

According to Dangote Refinery, it lowered its PMS gantry price from N877 to N828 per litre—a 5.6 per cent reduction—and its coastal price from N854 to N806 per litre. These changes, it said, were widely reported across national media and took effect before oil marketers adjusted their pump prices.

“The narrative attributing lower pump prices to the reversal of the 15 per cent import tariff is entirely false and deliberately misleading,” the company stated. “Our price adjustments were made independently and well before marketers changed their retail prices.”

Dangote added that although President Bola Ahmed Tinubu had approved the import tariff for implementation since October 21, the tariff had not been enforced at the time the refinery reduced its prices.

The company emphasised that the reduction aligns with its commitment to ensuring Nigerians benefit from domestic refining, noting that it has lowered prices more than seven times since commencing operations. It also said it has absorbed logistics costs during festive seasons to maintain uniform nationwide pricing and helped eliminate the recurrent fuel scarcity associated with the ember months.

The refinery criticised the continued importation of what it described as “substandard fuel,” saying such products are often sold at higher prices than its premium-grade PMS. It warned that allowing the dumping of inferior petroleum products could undermine Nigeria’s industrial growth, just as similar practices previously crippled the country’s once-vibrant textile industry.

Reaffirming its long-term commitment to Nigeria’s energy sector, Dangote said it remains unfazed by short-term market manoeuvres by speculative importers and is focused on delivering high-quality, competitively priced fuel to Nigerians. It urged stakeholders and the media to prioritise verified information in the public interest.