The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has refuted claims made by Dangote Industries Limited that they reported the Dangote Refinery to President Bola Tinubu due to its low-priced diesel, which allegedly threatened the business interests of petroleum product marketers.
Vice President of Dangote Industries, Devakumar Edwin, had alleged during a Nairametrics space session on X (formerly Twitter) that Nigerian oil marketers complained to President Tinubu about the refinery’s competitive diesel pricing, stating that the drop from N1,200 to N900 per litre was harmful to their businesses. According to Edwin, these marketers have continued to boycott Dangote’s diesel and aviation fuel, forcing the refinery to export most of its products due to low local demand.
In response, DAPPMAN’s Executive Secretary, Olufemi Adewole, denied the allegations, describing Edwin’s remarks as inaccurate and misleading. Adewole referenced a letter sent by DAPPMAN to Senate President Godswill Akpabio in July 2024, which highlighted concerns in the downstream petroleum sector and emphasized the need for fair competition rather than the creation of monopolies. The letter urged the Nigerian government to uphold the Petroleum Industry Act (PIA) 2021 and promote free market policies, especially in the supply of diesel and other petroleum products.
DAPPMAN stressed that while the association supports the success of the Dangote Refinery, creating a monopoly that limits competition and forces local marketers to exclusively source products from Dangote would be detrimental to the downstream sector. The group argued that this would restrict options for Nigerians and allow the refinery to dictate prices without market competition, drawing parallels with Dangote’s dominance in industries such as cement, sugar, and salt.
The letter also raised concerns about the refinery’s product specifications, alleging that the diesel produced by Dangote contains sulphur levels that exceed the 50 parts per million (ppm) standard required for imports, yet regulators continue to restrict other operators to sourcing diesel from Dangote Refinery.
DAPPMAN called for the removal of restrictions on product sourcing until the Port Harcourt and Warri Refineries are fully rehabilitated to increase local refining capacity and provide alternatives for marketers.
In response to the controversy, Adewole reaffirmed that petroleum marketers would continue to patronize the Dangote Refinery, despite the ongoing disagreement over pricing and market policies.
The situation highlights the tension between Nigeria’s largest refinery and local petroleum marketers, raising questions about competition, pricing policies, and the future of deregulation in the country’s downstream petroleum industry.
