FG Meets Local Refiners Over Pricing, Disputes Dangote’s Dirty Fuel Claims

The Federal Government, through the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), has countered allegations of dirty fuel importation into Nigeria. This was clarified during a meeting with oil marketers and local crude oil refiners in Abuja, including officials from the Dangote refinery and modular refineries.

Key Points:

• No Dirty Fuel Importation: The Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, emphasized that there is no dirty fuel being brought into Nigeria. He stated that the last importation of high-sulphur content fuel occurred in February and has since been addressed by the regulator.
• Allegations by Dangote: Devakumar Edwin, Vice President of Oil and Gas at Dangote Industries Limited, accused the NMDPRA of issuing licenses for the importation of high-sulphur diesel from Russia. He claimed that despite Dangote’s compliance with ECOWAS regulations, large quantities of such diesel were being dumped into the Nigerian market.
• Regulatory Compliance: Ukoha assured that all imported fuels meet the ECOWAS standards, with average sulphur content below the 50 parts per million (ppm) limit. He highlighted that local refiners have until December 31, 2024, to comply fully with these standards.

Meeting Outcomes:

• Pricing and Competition: Discussions centered around pricing, competition, and ensuring a stable supply of refined products at fair prices. The meeting was part of ongoing engagements to address these issues.
• Marketers’ Flexibility: Oil marketers indicated their willingness to purchase from various sources, including local refiners, to ensure product availability.
• Collaboration for Energy Security: Ukoha highlighted the need for continuous engagement between marketers and refiners to maintain energy security and fair market conditions.

Statements from Industry Representatives:

• RainOil Ltd: Gabriel Ogbeche, Group Managing Director, stated that marketers are free to source products from anywhere, including local refiners.
• Dangote Group: Rabiu Umar, Group Chief Commercial Officer, described the meeting as productive and emphasized the need for ongoing dialogue to advance the industry.

Government Assurance:

The NMDPRA reassured Nigerians of its commitment to ensuring the quality and safety of imported fuels, asserting that no dirty fuel will be allowed into the country. The authority also indicated that local refineries are taking steps to meet ECOWAS standards, with future compliance expected to improve further.

In conclusion, the Federal Government’s meeting with oil marketers and local refiners aimed to address concerns about fuel quality, pricing, and competition, ensuring that Nigeria’s energy sector operates efficiently and safely.