Depot Owners Clash with Dangote Refinery, Claim Cheaper Petrol Goes Abroad
- Depot owners under the aegis of Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) said that they control Nigeria’s fuel supply
- The association disclosed that Dangote Refinery cannot meet Nigeria’s fuel supply needs
- The depot operators alleged that Dangote Refinery sells petrol to them costlier than it does abroad
Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has debunked the assertion by Dangote Refinery that it can meet Nigeria’s domestic fuel supply needs.
DAPPMAN said that its members and other depots still control petrol supply across Nigeria, with over 68% dominance.
Source: Getty Images
“DAPPMAN controls Nigeria’s fuel levers”
DAPPMAN’s executive secretary, Femi Adewole, said depot owners are responsible for about 68% of fuel supply nationwide, relative to Dangote’s 22%.
According to Adewole, who appeared on Channels Television’s Morning Brief, depot owners are still the backbone of Nigeria’s downstream industry.
He disclosed that in May, Nigeria consumed about 1.7 billion litres of petrol, saying that Dangote accounted for just 24%, while the rest came from depot owners.
He said the association members are forced to import petrol due to Dangote’s pricing and allocation policies, which shut them out.
Depot owners disclose Dangote’s pricing abroad
He revealed that marketers resorted to imports to sustain their operations as Dangote has refused to sell to them.
Adewole alleged that Dangote Refinery sells to international buyers at prices N65 lower than Nigerian depots.
He is the pride of the nation. But if he gives international traders cheaper deals and raises prices for us by ₦45 above gantry levels, how do we stay competitive?” Adewole asked.
DAPPMAN’s allegations came amid growing concerns in the petroleum industry following the recently suspended strike by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG).
The umbrella body for depot operators linked the crisis to the refinery’s refusal to allow tanker drivers to unionise at the facility.
Operators want a fair ground from Dangote
Despite Dangote Refinery allowing union activities, DAPPMAN says there are still lingering issues in the petroleum sector.
The DAPPMAN spokesperson said that the association is open to striking a workable deal with the 650,000 bpd-capacity refinery to ensure equitable access.
“We want to buy locally, we want to support the nation’s pride, but we cannot do so at a loss. The market needs transparency and fair play,” he insisted.
Nigerians are closely observing the escalating struggle for market dominance, hoping that the fight for control does not result in fuel queues at filling stations.
Source: Getty Images
Dangote Refinery raises petrol price
Legit.ng earlier reported that Dangote Refinery increased its ex-depot price for petrol from N825 to N840 per litre.
This was according to data from PetroleumPriceNG, which also showed other depot operators increasing their prices.
Coming amid the rumoured shutdown of Dangote Refinery’s petrol production unit, the spike triggered a surge in depot prices.
Proofreading by Kola Muhammed, copy editor at Legit.ng.
Source: Legit.ng
