Pinnacle Oil & Gas announced Wednesday that it will never supply substandard petroleum products to Nigerians. Pinnacle Oil’s remark was in response to an apparent declaration published on Sunday by Dangote Refinery’s management claiming a blending plant was being built surrounding its facility in Lagos with the intention of selling inferior petroleum products in Nigeria.
In a news release, Pinnacle Oil & Gas noted that being the only depot in the area near the Dangote Refinery, it was responding to clear the air on the refinery’s concerns.
On November 3, the Dangote organization issued a press release claiming, “An international trading company has recently hired a depot facility next to the Dangote Refinery, with the objective of using it to blend substandard products that will be dumped into the market to compete with Dangote Refinery’s higher quality products.”
However, Pinnacle Oil & Gas argued that as a company with a history of honesty and rigorous adherence to existing standards, it could not provide low-quality products to Nigerians.
The company stated that “Pinnacle Oil & Gas has the only depot facility next to the Dangote Refinery.” Without hesitation, we state unequivocally that Pinnacle Oil & Gas would never import or distribute any off-spec or inferior goods into the Nigerian market.
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“Our company has a reputation for integrity and regulatory compliance, which is extremely important to us.”
The oil and gas company went on to say that in a deregulated atmosphere, allowing numerous buyers and sellers improved the system significantly.
It stated that it was appropriate for Nigerians to have supply options, whether for imported or domestically processed fuels. According to Pinnacle Oil & Gas, allowing this to happen will result in the lowest sustainable price.
According to Pinnacle Oil & Gas, “Deregulated commodities markets work best with an open system in which several sellers and buyers bid to define the market price. Nigeria’s ability to have supply alternatives that include both local refineries and imports is the mechanism that would 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.”
Pinnacle is an indigenous oil and gas firm that operates along the downstream value chain in Nigeria, with a focus on petroleum trading, marketing, distribution, and retail.
