Business

DAPPMAN to Dangote: Make Fuel Prices Fair, Expand Supply Access

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 sell products at competitive rates to ease nationwide fuel scarcity.

Speaking on Channels Television’s The Morning Brief on Wednesday, DAPPMAN spokesperson Ikem Ohia said closer collaboration between the refinery and marketers would ensure steady distribution and bring an end to queues at filling stations.

“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.

Pricing and Access Concerns

Ohia dismissed reports of a rift with the refinery, clarifying that marketers are simply seeking a transparent framework for regular bulk supply. He questioned the refinery’s current model, which he said prioritises retail gantry sales over large-scale offtake.

“The question is: at what price does he offer us, and do we actually have access to purchase these products from him?” he asked, noting that DAPPMAN’s members have developed a strong distribution network over the past two decades with depots in Lagos, Warri, Port Harcourt, and Calabar.

He urged the refinery to leverage these facilities for faster product evacuation, adding: “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.”

See also: Otedola tells DAPPMAN to buy Port Harcourt Refinery amidst rift with Dangote

No Call for Subsidies

Contrary to suggestions that marketers are seeking a return of fuel subsidy, Ohia said DAPPMAN is focused solely on ensuring adequate supply and fair pricing.

“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 stressed that global refining standards emphasise bulk offtake to maintain continuous production, warning that relying solely on retail sales cannot meet Nigeria’s daily consumption needs.

Industry Reactions

The call from DAPPMAN comes after Dangote announced a ₦4,000-truck CNG-powered fleet to distribute products nationwide. Some marketers argue the model could give the refinery excessive control over the downstream sector.

On Tuesday, billionaire investor Femi Otedola urged marketers to adapt to market realities and consider taking over the Port Harcourt Refinery to boost domestic supply rather than opposing Dangote’s approach.

Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) President, Billy Gilly-Harris, said even 4,000 trucks were insufficient to guarantee steady supply across the country, calling for a more open distribution structure.

Dangote Refinery, however, has maintained that it will not absorb marketers’ logistics costs, insisting that its prices reflect production costs and regulated margins. It also dismissed DAPPMAN’s subsidy claim of over ₦1.5tn as “false and unfounded,” reiterating that fuel subsidy has been abolished since May 2023.


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