The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has urged the Dangote Petroleum Refinery to improve access to fuel supplies and ensure that products are sold at fair and affordable rates for the benefit of Nigerians.
Speaking during an interview on Channels Television’s The Morning Brief on Wednesday, the association’s spokesperson, Ikem Ohia, said effective collaboration between marketers and the refinery would guarantee stable supply and help end long queues at filling stations nationwide.
He dismissed suggestions of a conflict with the refinery, clarifying that DAPPMAN’s main demand is a transparent arrangement that secures consistent distribution at sustainable prices.
“Our primary concern is to see petroleum products sold at affordable prices in a way that ensures constant availability, so Nigerians don’t have to queue endlessly for fuel,” Ohia explained.
Although he acknowledged that Dangote Refinery is currently the key supplier, Ohia stressed that questions about access and pricing remain unresolved.
“The critical issue is: at what price will products be sold, and will all marketers truly have access to purchase them?” he asked.
Highlighting DAPPMAN’s distribution experience, Ohia noted that its members have, for more than 20 years, built a nationwide network with depots in Lagos, Warri, Port Harcourt, and Calabar. He therefore urged the refinery to channel supplies through these facilities to meet rising demand.
“What we are asking Dangote to do is to make use of these depots that are already available so that together we can meet Nigerians’ needs,” he said.
On the allegation that marketers are lobbying for subsidies, Ohia responded firmly: “We are businessmen, just like Dangote. Nobody is asking for subsidies. We only want fair business terms, and discussions are still ongoing on how best to bridge the supply gap.”
He added that internationally, refineries typically depend on bulk supply to large-scale off-takers in addition to retail sales.
“In global practice, refineries prioritise bulk lifting by off-takers because it supports continuous production. Retail-only sales from gantries cannot satisfy national demand,” he stressed.
Ohia revealed that DAPPMAN had approached Dangote before production began to advocate for bulk supply agreements, but negotiations did not yield results.
“Rather than allow wider participation, he prefers to work with a limited number of partners, including one or two of our members. We believe an open and inclusive system will serve the country better than a controlled one,” he said.
On distribution challenges, he pointed out that many association members also operate filling stations, some with as many as 300 outlets but the restricted fuel allocation has prevented them from meeting consumer demand.
“Current supply volumes clearly fall short of market demand. Bulk deliveries to depots remain the only effective solution if Nigerians are to be served adequately,” he maintained.
The debate has been further complicated by Dangote’s investment in 4,000 CNG-powered trucks for nationwide distribution. While the move is aimed at improving logistics, marketers warn it could grant the refinery excessive dominance in the downstream sector.
Meanwhile, billionaire businessman Femi Otedola has advised DAPPMAN to realign its strategy, restructure operations, and even consider acquiring the Port Harcourt Refinery instead of opposing Dangote’s business model.
The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harris, also cautioned that the 4,000 trucks announced by Dangote are insufficient to ensure seamless nationwide distribution.
Responding to the growing concerns, Dangote Petroleum Refinery insisted it would not assume logistics costs for marketers.
In a recent statement, the refinery rejected DAPPMAN’s allegation of a subsidy burden of over N1.5 trillion as “false and baseless.” It maintained that products are priced strictly based on production costs and regulated margins at its gantry.
The company further stressed that marketers, like every other player in the industry, must handle their own transportation expenses, reminding stakeholders that fuel subsidies were abolished by the Federal Government in May 2023.
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