back to top

Dangote Refutes Claims of Producing Low-Quality Diesel

Share

Dangote Industries Limited (DIL) has strongly condemned recent online reports criticising the quality of its diesel products, asserting that its refined diesel is significantly superior to imported alternatives.

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

Reports circulated online, including statements from Farouk Ahmed, CEO of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), suggested that local refineries, including the Dangote refinery, were producing inferior products compared to imports.

Ahmed also said that the Dangote Refinery, which has a capacity of 650,000 barrels per day, is still in the pre-commissioning stage and about 45% complete.

Ahmed added, “Dangote Refinery, as well as some modular refineries like Watersmith Refinery and Aradel Refinery, are producing between 650 and 1,200 PPM.

Related Posts

“Therefore, in terms of quality, their products are inferior to imported ones.”

He added that Dangote’s current AGO has a sulfur content far exceeding the West African requirement of 50 parts per million (PPM), with levels ranging between 650 and 1,200 PPM.

Reacting to these claims, Dangote Industries refuted the allegations as false and baseless.

According to Chiejina, the Dangote refinery is designed to produce high-quality petroleum products that comply with strict international standards.

He emphasised that the allegations against the refinery are unfounded and misleading.

“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%, are baseless and mischievous,” Chiejina stated.

“Until late last year, diesel imports into Nigeria contained up to 7,000 parts per million (ppm) of sulfur, a practice that has persisted for many years.

“Our diesel is produced with significantly lower sulfur levels, making the quality-related allegations groundless. Our product is 80% superior to what is being imported into the country.”

Chiejina also addressed the misconception that medium-level sulfur diesel is only suitable for off-road use.

“This is a completely false statement, as it would imply that all diesel imports for the past 20 years have been damaging equipment,” he said.

Related Posts

He further questioned the logic of the pricing allegations, noting that high-sulfur diesel imports were previously sold at higher prices until Dangote Refinery began operations.

“If indeed high-sulfur diesel is sold at lower prices, why have we not seen these lower prices until now?”

The spokesperson affirmed that the recent price reduction of Dangote diesel was due to the company’s patriotism and the prevailing market dynamics of supply and demand.

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

Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, stated that indiscriminate licensing by the regulator allowed inferior products into the market.

Edwin explained that despite Dangote’s efforts to meet ECOWAS standards, the authority issued licenses to traders importing high-sulfur petrol from Russia, which has been restricted in the US and UK.

Speaking at a session with Energy Editors during a one-day training program organized by the Dangote Group, Edwin detailed the challenges faced by their refinery.

“The IOCs are intentionally obstructing the refinery’s efforts to purchase local crude by inflating premium prices above market rates,” Edwin asserted.

Read more

Local News