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Business News of Sunday, 21 April 2024

Source: legit.ng

‘Completely false’ - Dangote refinery sets record straight on allegation of substandard diesel

Dangote refinery Dangote refinery

Dangote Industries Limited has vehemently criticised an online report questioning the quality of its diesel supplied to the Nigerian market.

It was previously reported by a certain media publication that high sulphur diesel from the Dangote Refinery prompted the refiner to reduce domestic prices by 37%.

In a statement signed by the company's spokesperson, Mr Anthony Chiejina, the Dangote Group labelled the allegation as false, baseless, and mischievous, aimed at tarnishing the reputation of our esteemed organisation.

It would be recalled that in early April 2024, the company announced it had started supplying petroleum products to the local market.

A week later, the $20 billion refinery announced the reduction of the price of diesel by 16.6% to N1,000 per litre from N1,200 per litre in an effort to boost Nigeria's internal economy.

Chiejina emphasised that the refinery is engineered to manufacture top-quality petroleum products that comply with extremely rigorous international specifications.

The statement read in part: 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 reduction is linked to quality.

What we are producing is 80 per cent better than what is being imported into the country."

The company also addressed another allegation, claiming that Medium Level Sulphur diesel is intended for off-road use.

Chiejina said: "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."

He added that diesel imports for the high sulphur grade had been at significantly higher prices until Dangote Refinery started operation.

He questioned how the lower prices were never in effect if high sulfur diesel were sold at lower prices.

Chiejina confirmed that the primary reason for the reduction in Dangote diesel prices was the commitment of the management to the nation, along with the prevailing market dynamics of supply and demand.

He urged the public to dismiss the false and malicious allegations, emphasising that the Dangote Refinery is dedicated to providing the best products and services to Nigerians and contributing to developing and growing the Nigerian oil and gas sector.