President and Chief Executive of Dangote Industries Limited, Aliko Dangote, has disclosed that his refinery is working round the clock to ensure recent reductions in the gantry price were fully reflected at the retail level.
Speaking at a press conference at the Dangote Petroleum Refinery on Sunday, Dangote said his company is committed to ensure Nigerians enjoy the benefits of domestic refining.
From Tuesday, he said, all MRS filling stations would begin selling PMS at prices not exceeding N740 per litre, starting in Lagos.
He added that the refinery had reduced its minimum purchase requirement from two million litres to 500,000 litres to enable more marketers, including members of the Independent Petroleum Marketers Association of Nigeria (IPMAN), to participate.
“So if you come to the refinery today, you will get PMS at N699 per litre,” he said.
Dangote disclosed that despite frustration and sabotage, the refinery would deploy its Compressed Natural Gas (CNG) trucks in the coming days and was prepared to procure additional units beyond the initial 4,000 if required to sustain affordable pricing nationwide.
Responding to complaints from oil importers that the recent price reduction would result in losses, Dangote said the refinery was established primarily for the benefit of Nigerians.
“Anyone who chooses to continue importing despite the availability of locally refined products should be prepared to face the consequences,” he said.
He also highlighted quality differences, noting that products supplied through MRS and other offtakers from the refinery were straight-run fuels, unlike blended products imported from overseas markets.
“Nigerians have a choice to buy better quality fuel at a more affordable price or to buy blended PMS at a higher rate. Importers can continue to lose, so long as Nigerians benefit,” he added.
According to him, the refinery was driven more by legacy than profit, noting that he could have invested the 20 billion dollars elsewhere if financial gain were his sole objective. He further revealed plans to list the refinery on the Nigerian Stock Exchange to allow Nigerians own shares in the facility.
“We want every living Nigerian to have the opportunity to benefit, no matter how small their holding. If the market takes 55 per cent and I retain 45 per cent, I am satisfied,” he said.
He disclosed that discussions were ongoing with the Securities and Exchange Commission (SEC) to enable Nigerians to purchase shares in naira while receiving dividends in dollars.
Continuing, the President of DIL accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of misrepresenting the refinery’s capacity by publishing offtake figures rather than actual production levels.
“We have the capacity to meet local demand, and we have sufficient refined products in stock. But to keep prices high, imports are deliberately encouraged,” he said, adding that attempts were being made to push the refinery into exporting products only for them to be re-imported into Nigeria at higher prices.
“This refinery is for Nigerians first, and I am not giving up,” he said.
Dangote also disclosed that the refinery imports an average of 100 million barrels of crude oil annually from the United States, a figure expected to rise to 200 million barrels following expansion, due to insufficient domestic crude supply.
He added that the refinery also sources crude from Ghana and other countries, while exporting jet fuel and gasoline to the United States.
He further alleged that domestic refiners are forced to buy Nigerian crude at premiums of up to four dollars per barrel from the trading arms of international oil companies, placing them at a competitive disadvantage.
He called on the government to ensure crude oil taxes are assessed based on actual transaction values, warning that the current system allows under-declaration and revenue losses.
While calling for an investigation into the activities of the Chief Executive Officer of the NMDPRA, Engr Farouk Ahmed, Dangote accused him of economic sabotage.
Dangote also accused the leadership of the NMDPRA of colluding with international traders and oil importers to frustrate local refining through the continued issuance of import licences for petroleum products.
Besides, Dangote alleged that Ahmed was living beyond his legitimate means, claiming that four of his children attend secondary schools in Switzerland at costs running into several million dollars.
