Oil Marketers denies reporting Dangote Refinery over price dispute

In a developing conflict between Dangote Industries Limited and Nigerian oil marketers, the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has refuted claims that they reported Dangote Refinery to President Bola Tinubu over low diesel prices.

The denial follows remarks made by Devakumar Edwin, Vice President of Dangote Industries, during a session organized by Nairametrics on X (formerly Twitter), where he accused oil marketers of boycotting Dangote Refinery’s diesel and aviation fuel products due to slashed prices.

Edwin alleged that marketers had complained to the President about the refinery’s reduction in diesel prices, from ₦1,200 to ₦900 per litre, which they claimed was harmful to their businesses. According to Edwin, over 95% of petroleum product importers were refusing to buy from Dangote Refinery, forcing the company to export most of its diesel and aviation fuel abroad.

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However, in a statement DAPPMAN’s Executive Secretary, Olufemi Adewole, denied these allegations, clarifying that their communication with the government was focused on concerns about the creation of a monopoly in the downstream petroleum industry, rather than a direct complaint about pricing.

Adewole highlighted the risks of Dangote Refinery becoming the sole supplier of diesel (AGO) to the Nigerian market, potentially stifling competition and depriving consumers of cheaper alternatives.

A letter from DAPPMAN to the Senate President, dated July 4, 2024, surfaced, confirming that the marketers had raised concerns about regulatory policies and the impact on market competition.

The letter stressed the need for a free market in line with the Petroleum Industry Act (PIA) 2021 and urged against any monopolistic control by Dangote Refinery, pointing to similar patterns seen in other industries dominated by Dangote.

DAPPMAN also alleged that the refinery’s diesel product far exceeded the required sulphur content for imports, raising concerns about the lack of compliance with local standards while local marketers were restricted from importing higher-quality diesel from other sources.

Despite these tensions, Adewole maintained that DAPPMAN members were open to purchasing from the refinery, as long as fair market practices were upheld. As the dispute continues, industry players await further intervention from the government to ensure that the principles of deregulation are respected, and competition is preserved.