FG’s 15% Tariff Suspension Didn’t Trigger Petrol Price Drop-Dangote

The Dangote Refining and Petrochemical Company has dismissed claims that the recent reduction in petrol pump prices was prompted by the Federal Government’s suspension of a 15 per cent import tariff on Premium Motor Spirit (PMS), insisting that the price movement was driven solely by its own downward review of ex-depot rates.

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

It stressed that marketers only adjusted pump prices after the company reduced its gantry and coastal prices on November 6, well before the Federal Government’s policy suspension gained prominence.

“For the avoidance of doubt, the factor that prompted the price adjustment was our reduction of PMS gantry and coastal prices on November 6,” the company said.

“Any narrative suggesting that pump prices fell because the 15 per cent import tariff was reversed is entirely false.”

According to the refinery, it lowered its PMS gantry price from N877 to N828 per litre and its coastal price from N854 to N806 per litre, representing a 5.6 per cent decrease.

These revisions were publicly announced across major media outlets ahead of marketers’ subsequent pump price adjustments.

Dangote refuted assertions that the non-implementation and later suspension of the tariff influenced market prices, noting that President Bola Tinubu had approved the levy for implementation on October 21.

Despite this, the refinery explained, it went ahead with its price reduction as part of its commitment to alleviating pressure on consumers and supporting price stability in the downstream market.

The company argued that attempts by certain commentators and “speculative importers” to attribute the recent pump price decline to the tariff policy amounted to a deliberate distortion of facts aimed at confusing the public and undermining the emerging domestically driven supply system.

Dangote further highlighted its role in stabilising the market since commencing operations, stating that it has reduced fuel prices more than seven times, frequently absorbing logistics costs to maintain nationwide uniform pricing during festive periods.

It added that its entry had helped end the recurring “ember month” scarcity historically linked to distribution challenges, import delays, and product hoarding.

The refinery also criticised the influx of imported petrol, which it said often falls short of acceptable quality standards and is sold at higher prices compared to its internationally benchmarked products.

It warned that the dumping of such substandard fuel could harm the domestic industry in the same way dumping had previously contributed to the collapse of Nigeria’s textile sector.

Underscoring its long-term commitment to Nigeria’s energy security, the $20bn facility said it remained unaffected by short-term policy shifts or the activities of opportunistic traders who “enter and exit the market at will.”

It reiterated that its focus remained on delivering high-quality petroleum products at competitive prices.

Dangote urged marketers and stakeholders to rely on verified information and avoid circulating inaccurate claims capable of destabilising the market.

It reaffirmed that its November 6 price review, rather than tariff suspension, was the singular trigger for the recent pump price adjustment across the country.

THE WHISTLER had reported that The Centre for the Promotion of Private Enterprise (CPPE) had cautioned that the Federal Government’s suspension of the 15 per cent import duty on petrol and diesel poses significant risks to Nigeria’s refining sector, energy security, and long-term industrial development.

The organisation warned that the policy shift could reverse hard-won gains in domestic refining, undermine investor confidence, and expose the economy to renewed foreign exchange pressures and job losses.

In a policy brief issued on Sunday, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, said the decision to halt the duty contradicts Nigeria’s strategic economic objectives and places domestic refiners, particularly the Dangote Refinery and modular refinery operators, at a severe competitive disadvantage.