Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has said all it wants is a mutually-beneficial deal with the Dangote Refinery.
DAPPMAN said its members are in support of the Dangote refinery but need better collaboration with the management of the refinery to serve Nigerians better in the supply of petroleum products.
This comes on the heels of the ongoing scuffle between DAPPMAN and the management of Dangote Refinery, which has concluded plans to begin direct supply of petroleum products to retailers and large-scale consumers nationwide.
DAPPMAN had over the weekend kicked against the plan by the Dangote Refinery to slash petrol prices, stating that the frequent price cuts undermined competition and imposed financial strain on fellow marketers.
It also accused the refinery of selling products at lower prices to international buyers while quoting higher rates to domestic marketers.
Speaking in an interview on Arise News Morning Show on Monday, spokesman of DAPPMAN, Ikem Ohia, claimed that depot owners supply close to 70 per cent of petroleum products across the country, while the Dangote Refinery supplies only 30 per cent.
He said DAPPMAN had reached out to Dangote Refinery a couple of times for collaboration that would benefit Nigerians, but so far, its members are not getting the best value in their dealings with the Refinery.
The DAPPMAN spokesman alleged that depot owners have observed a significant price differential of about N65 margin compared to what the refinery offers international oil traders, adding that it negatively impacts their business operations.
Ohia lamented that Dangote Refinery’s frequent price cuts have made DAPPMAN members lose billions when they buy from the refinery.
He dismissed allegations that DAPPMAN members are sabotaging the refinery’s efforts to boost fuel supply across the country.
READ ALSO: Dangote Begins Direct Fuel Supply, Cuts Petrol Pump Price To ₦841/litre
He emphasised that private depots came into the oil and gas scene when Nigerians were suffering supply disruption and invested heavily in the business, and currently serve as a stopgap to curb fuel scarcity.
Buttressing the claim that Dangote Refinery only supplies about 30 per cent of the market demand, Ohia claimed that in June, a total of 1.4 billion litres of PMS was distributed, out of which the refinery supplied only 455 million litres, while depot owners supplied the rest.
He insisted that the products they bring into the country were usually tested by internationally accredited bodies, dismissing allegations of the importation of substandard petroleum products.
He called for a more favourable ground between the refinery and depot owners.
“What we want from the management of the Dangote Refinery is a level-playing field, an understanding for us to meet on amicable ground that will be mutually beneficial to all concerned,” Ohia stated.
Victor Ezeja is a passionate journalist, scholar and analyst of socioeconomic issues in Nigeria and Africa. He is skilled in energy reporting, business and economy, and holds a master's degree in mass communication.
