The Dangote Petroleum Refinery has dismissed reports suggesting that it suspended petrol production for maintenance, stating that it supplied over 43 million litres of Premium Motor Spirit (PMS) to the Nigerian market in a single day.
Officials of the refinery disclosed that 43.3 million litres of petrol were loaded and distributed on Saturday alone, countering speculation that operations had been halted. According to the refinery, the volume released exceeded Nigeria’s average daily petrol consumption by a wide margin.
The clarification followed reports of rising petrol prices at private depots, with some marketers attributing the increase to an alleged shutdown at the Dangote facility. Refinery sources described those claims as false and misleading, arguing that some traders were using the rumour to justify price hikes.
One official questioned why prices were being raised when trucks were still being loaded without interruption. The source insisted that operations were running normally and that no tanker had been turned back.
The refinery also assured Nigerians of adequate fuel availability, stating that its storage tanks currently hold enough petrol to meet national demand for more than 20 days.
This, the company said, should eliminate fears of supply shortages or scarcity.
Concerns were raised by the refinery over what it described as deliberate efforts by some marketers to create uncertainty in the downstream sector. Nigerians were advised to buy fuel from stations dispensing Dangote-produced petrol to avoid inflated prices.
Despite the reassurance, petrol prices rose sharply at several private depots in Lagos, Warri and other fuel distribution hubs. Reports indicated that ex-depot prices climbed above N800 per litre within days, compared to lower rates earlier in the week.
Marketers were said to have linked the surge to an alleged halt in Dangote’s petrol production. However, analysts believe the increases may be an attempt by importers and depot owners to recover losses suffered after the refinery slashed its petrol gantry price in December.
The Dangote refinery had reduced its ex-depot petrol price from N828 to N699 per litre, a move that disrupted the market and forced many retailers to lower pump prices. Filling stations operated by MRS began selling petrol at N739 per litre nationwide, prompting motorists to avoid outlets charging higher rates.
While marketers complained of mounting losses, the President of the Dangote Group, Aliko Dangote, acknowledged that the refinery was also losing revenue as a result of the price cut. However, he maintained that the company would rather absorb losses than allow fuel imports to dominate the market.
Industry findings suggest petrol importers could lose over N100 billion monthly due to the lower gantry price, while the refinery itself may forfeit close to N91 billion within the same period. Despite this, the refinery has ruled out any immediate supply disruption, insisting that production and distribution remain stable.
