Petrol may hit N1,400/litre without local refining – Dangote

Dangote Petroleum Refinery has warned that petrol pump prices could rise to as much as N1,400 per litre if Nigeria relies solely on fuel imports, stressing that large-scale domestic refining has become a critical stabilising force in the downstream petroleum market.

The refinery gave the warning on Monday while dismissing reports that it was shutting down for maintenance, describing the claims as false, misleading, and deliberately circulated to justify another increase in pump prices.

In a statement, the refinery said, “Recent price movements further highlight an uncomfortable reality. In the absence of the Dangote Petroleum Refinery, fuel importers would continue to operate without restraint, with petrol prices potentially escalating to levels estimated at up to N1,400 per litre in a post-subsidy environment. The refinery’s operations have therefore served as a critical stabilising force in the downstream petroleum market.”

It said the alleged shutdown report was being promoted by fuel importers whose commercial interests were threatened by domestic refining, adding that the misinformation was aimed at exploiting Nigerians.

“The false report in question is a deliberate fabrication promoted by fuel importers whose commercial interests are threatened by the stabilising impact of large-scale domestic refining.

“This misinformation has been opportunistically deployed by fuel importers to justify recent and unwarranted increases in petrol pump prices. Such conduct is inconsistent with national interest and imposes unnecessary hardship on Nigerians,” the refinery said.

Dangote refinery insisted that production remained ongoing, stable and uninterrupted, noting that it currently has the capacity to supply between 40 million and 50 million litres of Premium Motor Spirit daily, depending on market demand.

“Dangote Petroleum Refinery is not shutting down. Production remains ongoing, stable, and uninterrupted. Dangote Petroleum Refinery continues to operate at scale and retains the capacity to supply between 40 million and 50 million litres of Premium Motor Spirit daily through January and February, subject solely to market demand,” it said.

The company disclosed that on January 4, it produced 50 million litres of PMS and evacuated 48 million litres through its gantry, adding that current stock levels were sufficient to cover more than 20 days of national consumption.

“On January 4, the refinery produced 50 million litres of PMS and evacuated 48 million litres via its gantry. Current stock levels cover over 20 days of national consumption, effectively dispelling any concerns about supply,” it stated.

Clarifying the issue of maintenance, the refinery said routine work on specific units does not affect overall output because of the integrated design of its facilities.

“Due to the sophistication and integrated design of its processing units, routine maintenance on specific units, including the Crude Distillation Unit and Residual Fluid Catalytic Cracking unit, does not interrupt overall production,” it said.