The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has called on the Dangote Refinery to make its fuel supply more accessible to marketers and sell products at affordable rates.
Ikem Ohia, DAPPMAN’s representative, told Channels Television’s The Morning Brief on Wednesday that tighter collaboration with the refinery will assure consistent supply and put an end to fuel lineups around the country.
He denied rumors of a schism with the refinery, arguing that marketers merely want a transparent agreement that ensures consistent delivery.
“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.
While recognizing the refinery as the leading provider, Ohia stated that access and pricing remain the primary challenges.
“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 emphasized that DAPPMAN members have built a strong distribution network with depots in Lagos, Warri, Port Harcourt, and Calabar over the past two decades and asked Dangote to use these resources.
“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 said.
Speaking on claims that marketers were pushing for subsidies, he replied, “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.”
According to him, global practice indicates that refineries rely on both bulk supplies to off-takers and retail sales.
“Ideally, refineries emphasize bulk evacuation through off-takers who can lift massive quantities and allow continuous production. Relying only on retail gantry sales cannot meet national demand,” he stated.
He stated that DAPPMAN approached Dangote before manufacturing began to request bulk supply, but no solid agreement was struck.
“Instead, he prefers to work with a few selected partners, which includes one or two of our members. We believe an open system, not a controlled one, will help the country,” he said.
Speaking on distribution, Ohia noted that many of the association’s members also operate filling stations, some with as many as 300 outlets, but restricted supply has left them 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 said.
The debate arose when Dangote invested in 4,000 CNG-powered trucks for statewide distribution.
Marketers believe the arrangement could give the refinery too much power over the downstream industry.
On Tuesday, millionaire businessman Femi Otedola asked DAPPMAN to react to market developments by restructuring and considering taking over the Port Harcourt Refinery rather than rejecting Dangote’s model.
Billy Gilly-Harris, president of the Petroleum Products Retail Outlets Owners Association of Nigeria, also weighed in on the subject, claiming that the 4,000 trucks were insufficient to assure consistent supply across the country.
However, the refinery has stated that it will not absorb the logistics costs that marketers wish to transfer to it.
Dangote Petroleum Refinery called DAPPMAN’s subsidy claim of about ₦1.5tn “false and unfounded,” stating that products are sold at their value based on production costs and regulated margins.
It contended that marketers, like other industry players, must cover the cost of shipping items to their depots and that the Federal Government had eliminated subsidies on petroleum products in May 2023.
