Dangote Defends Product Quality, Says Diesel 80% Better Than Imported Product

Dangote Industries Limited (DIL) has condemned an online report criticizing the quality of its products, adding that its refined diesel is 80% superior to those currently imported into Nigeria.

In a statement released by the company’s spokesperson, Anthony Chiejina, on Friday, Dangote Industries Limited called reports of producing high-sulfur diesel “mischievous and aimed at tarnishing our reputation.”

Recall that reports circulating online, made by NMDPRA CEO Farouk Ahmed, claim that local refineries, including the Dangote refinery, are producing inferior products compared to imports.

Reacting to this report, Dangote said the allegation was false, baseless, and mischievous.

What Dangote is Saying
The spokesperson said the refinery is designed to produce top-quality petroleum products that meet strict international standards.

“The false and misleading allegations made by some media outlets that the Dangote Refinery is producing substandard diesel which is why it reduced the price by 37%, is baseless and mischievous.

“Until late last year, diesel imports into Nigeria were up to 7,000 parts per million (ppm) of Sulphur which has been going on for many years. Our diesel is produced currently at significantly lower levels of Sulphur; as such, we find baseless the allegation that the reason for the reduction is linked to quality. What we are producing is 80% of what is being imported into the country.

“Another inaccurate assertion is that Medium Level Sulphur diesel is meant for off-road use. This is a completely false statement as this would have invariably meant that all the imports for the last 20 years have been damaging equipment.

“Thirdly, diesel imports for the high Sulphur grade have been at significantly higher prices until we started operation. If indeed high Sulphur diesel is sold at lower prices how come we never saw the lower prices until now?” the spokesperson said.

Chiejina affirmed that the real reason behind the Dangote diesel price reduction was principally due to the patriotism of the management to the nation as well as prevailing market dynamics of supply and demand.

What you should know

In June, the management of Dangote Refinery accused NMDPRA of aiding the importation of “dirty” diesel and jet fuel into the country.

The Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, said the indiscriminate licensing from the regulator made it possible for there to be inferior products in Nigeria.

According to Edwin, despite Dangote’s effort to meet ECOWAS standards, the authority gives licenses to traders to import high-sulfur petrol from Russia into the country.

He explained that since the US and UK have issued a cap on Russia’s petroleum products, these products are now dumped in Nigeria’s market by various traders.

In addition, the leadership of the mega refinery also accused International Oil Companies (IOCS) of price manipulation, aimed at undermining and sabotaging the refinery in the market.