AfriPulse
DAPPMAN Urges Dangote Refinery on Accessibility, Fair Pricing
The Depot and Petroleum Products Marketers Association of Nigeria has called on the Dangote Refinery to make its fuel supply more accessible to marketers and sell products at affordable rates.
The spokesperson for the association, Ikem Ohia, said on Channels Television’s The Morning Brief on Wednesday that closer collaboration with the refinery would ensure steady supply and end fuel queues across the country.
He dismissed claims of a rift with the refinery, insisting that marketers only want a transparent arrangement that guarantees regular distribution.
“Our key interest is to have petroleum products offered at reasonable prices consistently, in a way that there’s no stock-out and Nigerians no longer queue for fuel,” Ohia stated.
While acknowledging the refinery as the dominant supplier, Ohia explained that access and pricing remain the major concerns.
“The question is: at what price does he offer us, and do we actually have access to purchase these products from him?” he asked.
He pointed out that for over two decades, DAPPMAN members have developed a strong distribution network with depots in Lagos, Warri, Port Harcourt and Calabar, and urged Dangote to take advantage of these facilities.
“What we are asking Dangote to do is to use these depots that are already in existence for us to meet the demands of Nigerians,” he said.
On claims that marketers were pushing for subsidies, he replied, “We are businessmen; he is a businessman. We’re not asking for subsidies. We went into negotiations and are still negotiating to see how he can bridge the gap.”
According to him, global practice shows that refineries usually rely on bulk supply to off-takers alongside retail sales.
“Ideally, refineries emphasise bulk evacuation through off-takers who can lift massive quantities and allow continuous production. Relying only on retail gantry sales cannot meet national demand,” he stated.
He added that although DAPPMAN approached Dangote before production commenced to request bulk supply, no firm understanding was reached.
“Instead, he prefers to work with a few selected partners, which includes one or two of our members. We believe an open system, not a controlled one, will help the country,” he said.
On distribution, Ohia noted that many of the association’s members also operate filling stations, some with as many as 300 outlets, but restricted supply has left them unable to meet demand.
“Figures don’t lie; whatever is supplied now doesn’t meet full market needs. Bulk deliveries to depots are necessary if we must serve Nigerians effectively,” he said.
The debate comes after Dangote invested in 4,000 CNG-powered trucks for nationwide distribution.
Marketers argue the approach could give the refinery too much control of the downstream sector.
On Tuesday, billionaire businessman, Femi Otedola, urged DAPPMAN to adapt to market changes, advising them to restructure and consider taking over the Port Harcourt Refinery rather than opposing Dangote’s model.
Also weighing in on the issue, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gilly-Harris, said the 4,000 trucks were not sufficient to ensure steady supply across the country.
The refinery, however, has maintained that it will not bear the logistics expenses that marketers want transferred to it.
In a recent statement, Dangote Petroleum Refinery described DAPPMAN’s subsidy claim of over ₦1.5tn as “false and unfounded,” insisting that products are sold at its gantry strictly on the basis of production costs and regulated margins.
It argued that marketers, like other players in the industry, must cover the cost of transporting products to their depots, adding that subsidy on petroleum products had been abolished by the Federal Government since May 2023.
Source: EconomicConfidential | Read the Full Story…
