Dangote Petroleum Refinery has warned that petrol pump prices could rise to as much as ₦1,400 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 issued 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 round of increases in petrol pump prices.
In a statement, the company said recent price movements in the market underscored the risks of dependence on imported fuel in a post-subsidy environment.
“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 ₦1,400 per litre in a post-subsidy environment,” the refinery said.
“The refinery’s operations have therefore served as a critical stabilising force in the downstream petroleum market.”
The refinery alleged that the shutdown reports were being promoted by fuel importers whose commercial interests were threatened by the rise of domestic refining, accusing them of spreading misinformation to exploit 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,” the statement said.
“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.”
Dangote Petroleum Refinery maintained that production remained ongoing, stable, and uninterrupted, noting that it has the capacity to supply between 40 million and 50 million litres of Premium Motor Spirit (PMS) daily, depending on market demand.
“Dangote Petroleum Refinery is not shutting down. Production remains ongoing, stable, and uninterrupted,” it said.
“The 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.”
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 explained that routine work on specific units does not affect overall output due to 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,” the company said.
It added that other units remained fully operational and continued to produce key petroleum products for the domestic market.
“The refinery continues to produce Premium Motor Spirit, Automotive Gas Oil, and Jet A-1 through the operation of other critical units, including but not limited to the Naphtha Hydrotreater, CCR Reformer, and Hydrocracker, which remain fully operational,” the statement said.
