In a fierce dispute that has captured the attention of the Nigerian oil industry, Dangote Refinery and Pinnacle Oil and Gas are currently trading accusations over allegations of substandard petrol production and supply.
The conflict escalated as both companies issued statements defending their reputations, raising concerns about quality control and regulatory compliance in Nigeria’s fuel market.
The clash not only threatens the credibility of the involved parties but also has broader implications for consumers and stakeholders within the sector, as fears grow regarding the safety and integrity of fuel supplies nationwide.
Dangote fired the first salvo when it lifted the lid on a blending plant that was being set up near its Lagos facility with the aim of distributing inferior petroleum products.
Dangote added that deregulation is not and should not be seen as a licence to blend and flood the country with off-spec products, thereby jeopardising national interest.
Dangote, while responding to remarks by Robert Dickerman, the Chief Executive Officer of Pinnacle Oil and Gas Limited, concerning the importation and blending of petroleum products, which he framed within the context of a “deregulated commodity market”, said that his argument for a deregulated market could not obscure the serious implications of his actions, which, it claimed, not only threatened the integrity of Nigeria’s energy sector but also endangered the welfare of its citizens.
While reiterating its support for deregulation and industrialisation, Dangote emphasised that this support is grounded in a commitment to the sustainable growth of the country’s economy and the protection of its people from exploitation. The refinery made it clear that the health and safety of Nigerians should never be compromised in the pursuit of profit. The company also raised concerns over Pinnacle Oil’s decision to lease its tank farms to a company without any retail outlets in Nigeria, questioning the strategic intent behind such actions, particularly given that the farms are located just 500 metres from Dangote’s refinery. It expressed its vigilance regarding the coordinated efforts to undermine the Dangote Refinery, drawing parallels to the fate of refineries in Port Harcourt, Kaduna, and Warri.
Responding, Pinnacle Oil & Gas unequivocally stated yesterday that it would never compromise standards by selling substandard petroleum products to Nigerians. In its press release, Pinnacle Oil & Gas clarified its position, emphasising that, as the only depot located close to Dangote Refinery, it sought to address the concerns raised by the refinery and reinforce its dedication to maintaining high-quality standards in all its products.
“Pinnacle Oil & Gas has the only depot facility next to the Dangote Refinery. Without equivocation, we state that Pinnacle Oil & Gas would never engage or attempt to import or distribute any off-spec or substandard product into the Nigerian market.“Our company has a reputation for integrity and regulatory compliance, which is extremely important to us.”The company added that in a deregulated environment, the system worked a lot better when allowed to have multiple buyers and multiple sellers.“Deregulated commodity markets work best with an open system of multiple sellers and multiple buyers bidding to establish the market price. For Nigeria to have supply options that include local refineries or imports is the mechanism that will establish the lowest sustainable prices.
“A free market is also regulated to ensure that all products meet the country’s specifications and that all players behave responsibly”, the company said.
https://thesun.ng/dangote-refinery-pinnacle-oil-clash-over-substandard-petrol-allegations