FG Meets Local Refiners Over Pricing, Disputes Dangote’s Claims
The Federal Government on Tuesday refuted claims of importing dirty fuel into Nigeria, contradicting recent statements from an official at the Dangote Petroleum Refinery.
Following a meeting with oil marketers and local refiners in Abuja, the government discussed refined product pricing, competition, and importation of products also produced locally.
Representatives from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) addressed allegations of importing dirty fuel. Executive Director Ogbugo Ukoha emphasized that the last importation of high-sulphur content fuel was in February, and corrective measures had since been implemented.
“There is no dirty fuel being brought into Nigeria,” Ukoha stated, countering claims by Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, who accused the NMDPRA of issuing licenses indiscriminately for the importation of high-sulphur diesel from Russia.
Edwin had noted that the importation of such diesel surged after the US, EU, and UK imposed sanctions on Russian petroleum products, leading to a significant presence of high-sulphur diesel in Nigeria. He expressed concerns about the health risks and non-compliance with ECOWAS regulations.
Responding, Ukoha assured that all importation procedures were strictly followed to prevent dirty fuel from entering Nigeria. He explained that while ECOWAS set a sulphur content limit of 50 parts per million (ppm) for imports, local refiners were given until December 31, 2024, to comply.
Ukoha also highlighted that since February, the sulphur content in imported diesel had consistently stayed below 50ppm. He assured that local refineries were equipped with desulfurization units to meet these standards soon.
During the meeting, Ukoha and oil marketers discussed ongoing engagements aimed at ensuring energy security and fair pricing in the market. He emphasized the need for continuous collaboration to maintain fuel supply stability.
Regarding claims that the government was forcing marketers to buy from Nigerian refineries, Ukoha clarified that the market remained deregulated and open, with provisions from the Petroleum Industry Act (PIA) being implemented to ensure fair competition.
Gabriel Ogbeche, Group Managing Director of RainOil Ltd, affirmed that marketers had the freedom to source products from various suppliers, including local refineries. He noted that ongoing discussions aimed to maintain a level playing field for all parties.
Rabiu Umar, Group Chief Commercial Officer of Dangote Group, described the meeting as productive and indicative of future collaborations to advance the industry.
Recent concerns have emerged over marketers allegedly boycotting the Dangote refinery by importing diesel, despite its significant local production capacity.