Dangote Replies Marketers Over Monopoly Claims, Says Refinery Can Meet Domestic Fuel Demand

• Dangote Refinery has refuted claims by depot owners that the refinery cannot meet Nigeria’s domestic fuel demand
• The refinery officials disclosed that the plant has sufficient fuel to meet domestic supply needs and for exports
• Depot owners had accused the Dangote Refinery of trying to monopolise the local market by embarking on petrol price cuts

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

Dangote Refinery has debunked claims by oil marketers that it cannot meet local fuel demand.

The refinery’s officials disclosed that the facility has enough fuel to meet local demands and for export.

Depot owners attack Dangote over price cuts

Legit.ng reported that Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) said the 650,000 bpd-capacity refinery cannot meet Nigerians' now reduced petrol consumption needs.

The association’s executive secretary, Olufemi Adewole, disclosed that marketers have been importing fuel to keep their businesses afloat.

DAPPMAN’s spokesman refuted the allegations made by Aliko Dangote, the Chairman of the Dangote Group, that cabals were still fighting against his $20 billion refinery.

Adewole disclosed that despite the refinery’s size, it has not met the demands of the local market, saying private depot owners continue to meet the needs of the domestic fuel market by importation.

Dangote Refinery says it has sufficient fuel

However, Punch reports that an official of the Lekki-based refinery said the facility is still exporting fuel after supplying the domestic market.

He said the plant loads millions of litres of fuel daily, asking how the marketers concluded that the facility could not satisfy local demands.

The official reportedly said that Nigeria’s consumption numbers have been manipulated to suit various purposes at the height of the fuel subsidy.

According to reports, the refinery has more fuel for the local market and export.

Another official reportedly said that the facility noted President Bola Tinubu’s decision to end the import of goods that can be produced locally is the way to grow the economy, warning that importers will try to frustrate the policy.

The DAPPMAN official had accused Dangote of planning to monopolise the downstream sector through petrol price cuts.

Marketers allege losses due to price cuts

Adewole said that the refinery announces petrol price cuts after cargoes have left the refinery’s gantry, which has left many marketers incurring losses quietly.

Dangote's source disclosed that some importers don’t care about Nigerians as they are engaged in profiteering and round-tripping when the Nigerian government pays subsidies on imported fuel.

According to reports, a consultant to the Dangote Refinery challenged the depot owners, IPMAN, and PETROAN to disclose the quantity of fuel the refinery has in stock before concluding on capacity.

Dangote to export another essential product

Legit.ng earlier reported that Dangote Packaging Limited (DPL) has unveiled plans to increase its export of polypropylene into the African market due to an increased production capacity facilitated by new machinery commissioned in the two manufacturing facilities.

Robert Ade-Odiachi, the chairman of the company’s board of directors, revealed the development during a strategic board meeting.

Ade-Odiachi said that the company is raising its production from 36 million to 56 million polypropylene bags monthly and will increase the figure in the coming years.

Source: Legit.ng