Sell Fuel For Us At Cheaper Rate, Open Supply Channels – Marketers To Dangote

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has called on the Dangote Petroleum Refinery to make its fuel supply more accessible and affordable to marketers, stressing that transparent distribution would end fuel queues across the country.

Speaking on Channels Television’s The Morning Brief on Wednesday, the association’s spokesperson, Ikem Ohia, dismissed reports of a rift with the refinery but insisted that marketers were only asking for fairness.

“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 said.

Ohia acknowledged Dangote as the dominant supplier but questioned the model of restricting supply to a few selected partners.

“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 noted that for over two decades, DAPPMAN members had built strong distribution networks 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 added.

Responding to claims that marketers were lobbying for subsidies, Ohia maintained that their concerns were purely commercial.

“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,” he said.

He argued that, globally, refineries rely on bulk supply to off-takers as well as retail sales, and Nigeria should not be an exception.

“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,” the oil marketer said.

Dangote’s Truck Fleet Raises Concerns

Naija News reports that the debate comes as Dangote has invested in 4,000 CNG-powered trucks for nationwide distribution, a move marketers fear could give the refinery too much control over the downstream sector.

Ohia said that restricted supply had already left many of their members, some of whom operate up to 300 filling stations, 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 stressed.

Industry Stakeholders Weigh In

On Tuesday, billionaire businessman Femi Otedola urged marketers to adapt to changing realities, advising them to restructure and consider taking over the Port Harcourt Refinery rather than opposing Dangote’s model.

The President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harris, also warned that the 4,000 trucks would not be sufficient to meet nationwide demand.

Dangote Refinery Defends Pricing

The refinery has rejected DAPPMAN’s claims of over ₦1.5tn in hidden subsidies, describing them as “false and unfounded.”

In a statement, Dangote Petroleum Refinery explained that products are sold strictly based on production costs and regulated margins.

It insisted that logistics costs remain the responsibility of marketers and not the refinery.

“Subsidy on petroleum products was abolished by the Federal Government in May 2023. Marketers, like all players, must bear the cost of transporting products to their depots,” the statement read.

Source: Naijanews