Pinnacle Oil and Gas Debunks Allegations of Blending Substandard Petroleum Products

Pinnacle Oil and Gas Debunks Allegations of Blending Substandard Petroleum Products

Pinnacle Oil and Gas Limited, a leading player in Nigeria's downstream sector, has categorically denied allegations of blending substandard petroleum products. The company's response comes after Dangote Organization's recent press release insinuated that an international trading company had hired a depot facility next to the Dangote Refinery to blend substandard products.

In a statement, Bob Dickerman, Chief Executive Officer of Pinnacle Oil and Gas, emphasized the company's commitment to integrity and regulatory compliance. "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," Dickerman said.

Dangote's press release had raised concerns about the potential harm to Nigeria's domestic refining industry, citing the need for protectionist measures to safeguard local jobs and economic growth. However, Pinnacle Oil and Gas countered that a free market with multiple sellers and buyers is essential for establishing the lowest sustainable prices.

According to Anthony Chiejina, Group Chief Branding and Communications, "Deregulated commodity markets work best with an open system of multiple sellers and multiple buyers bidding to establish the market price." He added that for Nigeria to have supply options that include local refineries or imports is the mechanism that will establish the lowest sustainable prices.

The Nigerian National Petroleum Corporation (NNPC) and the Department of Petroleum Resources (DPR) have yet to comment on the allegations. However, industry experts expect regulatory bodies to scrutinize the claims and ensure compliance with Nigeria's petroleum standards.

Pinnacle Oil and Gas emphasized that it operates with transparency and adheres to international best practices. The company's reputation for integrity and regulatory compliance is extremely important, and it will continue to uphold these values.

The development highlights the complexities of Nigeria's downstream sector, where competition and regulatory compliance are crucial. As the country struggles to meet its petroleum needs, the debate surrounding substandard products and protectionist measures intensifies.

In the press release, Dangote Organization noted that countries like the US and Europe have imposed high tariffs on EVs and microchips to protect their domestic industries. However, Pinnacle Oil and Gas argued that Nigeria's growth depends on a free market, not protectionism.

The company's stance is supported by industry experts, who believe that multiple sellers and buyers bidding to establish market prices will drive growth and sustainability in Nigeria's downstream sector.

As the debate unfolds, stakeholders will closely monitor the situation, seeking clarity on the allegations and the implications for Nigeria's downstream sector. The outcome will have significant implications for the country's economic growth, job creation, and energy security.