WE WANT PETROLEUM PRODUCTS AT REASONABLE PRICES – DAPPMAN
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By Sunmisola Shodayo
The Depot and Petroleum Products Marketers Association of Nigeria has urged the Dangote Refinery to enhance the accessibility of its fuel supply to marketers and to offer products at reasonable prices.
The association’s spokesperson, Ikem Ohia, articulated during an appearance on Channels Television’s The Morning Brief on Wednesday that closer cooperation with the refinery would ensure a reliable supply and eliminate fuel queues nationwide.
He refuted suggestions of a discord with the refinery, emphasizing that marketers merely seek a transparent arrangement that ensures regular distribution.
“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 conveyed.
While recognizing the refinery as the principal supplier, Ohia clarified that access and pricing remain the predominant issues.
“The question is: at what price does he offer us, and do we actually have access to purchase these products from him?” he inquired.
He highlighted that for more than 20 years, DAPPMAN members have established a robust distribution network with depots located in Lagos, Warri, Port Harcourt, and Calabar, and appealed to Dangote to leverage these facilities.
“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 remarked.
In response to allegations that marketers were advocating for subsidies, he stated, “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.”
He explained that global practices indicate that refineries typically depend on bulk supplies to off-takers in conjunction with retail sales.
“Ideally, refineries emphasise 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 indicated.
He added that although DAPPMAN approached Dangote before production began to request bulk supply, no formal agreement was reached.
“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 asserted.
Regarding distribution, Ohia observed that numerous members of the association also operate filling stations, some with as many as 300 outlets, but limited supply has hindered them from meeting demand.
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“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 emphasized.
This discourse arises following Dangote’s investment in 4,000 CNG-powered trucks for nationwide distribution.
Marketers contend that this strategy could confer excessive control of the downstream sector to the refinery.
On Tuesday, billionaire entrepreneur Femi Otedola encouraged DAPPMAN to adapt to market dynamics, advising them to restructure and consider acquiring the Port Harcourt Refinery rather than opposing Dangote’s model.
Additionally, addressing the matter, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria, Billy Gilly-Harris, stated that the 4,000 trucks were inadequate to guarantee a consistent supply nationwide.
Nevertheless, the refinery has asserted that it will not assume the logistical expenses that marketers wish to shift onto it.
In a recent announcement, Dangote Petroleum Refinery characterized DAPPMAN’s subsidy assertion of over ₦1.5 trillion as “misleading and baseless,” emphasizing that products are sold at its gantry solely based on production costs and regulated profit margins.
It contended that marketers, like other participants in the sector, must bear the expenses associated with transporting products to their depots, adding that the Federal Government had eliminated the subsidy on petroleum products since May 2023.
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