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DAPPMAN urge Dangote to ensure affordable, accessible supply

The Depot and Petroleum Products Marketers Association of Nigeria, has appealed to Dangote Petroleum Refinery to make its products more affordable and accessible to ensure stable fuel supply nationwide.

Speaking on Channels Television’s The Morning Brief on Wednesday, the association’s spokesperson, Ikem Ohia, said marketers were not opposed to the refinery but wanted a transparent arrangement that would guarantee steady distribution and fair pricing.

“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.

He explained that while Dangote Refinery has become the dominant supplier, marketers are concerned about access and pricing.

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“The question is: at what price does he offer us, and do we actually have access to purchase these products from him?” he asked.

Ohia also highlighted the extensive depot network DAPPMAN has built over the past two decades in Lagos, Warri, Port Harcourt, and Calabar, stressing that the infrastructure could support nationwide distribution if Dangote embraces partnership.

“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.

On allegations that marketers were pushing for subsidies, he clarified: “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.”

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The marketers argued that relying solely on retail gantry sales at the refinery cannot meet national demand. “Ideally, refineries emphasise bulk evacuation through off-takers who can lift massive quantities and allow continuous production,” Ohia noted.

He further revealed that although DAPPMAN had approached Dangote before production began to request bulk supply, the refinery preferred to deal with a few selected partners. “We believe an open system, not a controlled one, will help the country,” he said.

On Tuesday, billionaire businessman Femi Otedola urged marketers to adapt to new realities, suggesting that DAPPMAN should consider investing in the Port Harcourt Refinery rather than opposing Dangote’s distribution model.

Also commenting, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gilly-Harris, said Dangote’s fleet of 4,000 compressed natural gas-powered trucks was not enough to meet the country’s fuel distribution needs.

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The refinery, however, has dismissed marketers’ claims, insisting that its pricing is transparent and based on production costs. In a recent statement, it described DAPPMAN’s assertion of a ₦1.5tn subsidy as “false and unfounded,” reiterating that it would not absorb logistics costs.

“The products are sold at our gantry strictly on the basis of production costs and regulated margins,” the refinery stated. “Like every other player in the industry, marketers must cover the cost of transporting products to their depots.”

The company also stressed that fuel subsidy had been abolished by the Federal Government since May 2023, and as such, all players must operate within the realities of a deregulated market.

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