Marketers urge dangote to open supplies, ensuring affordable fuel access

Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) have asked Dangote Petroleum Refinery to provide more open access to its fuel supply and to ensure products are sold at affordable and consistent prices to marketers nationally.

Speaking during an interview at Channels Television’s The Morning Brief on Wednesday, Dappman Ikem Ohia’s spokesman clarified that there was no conflict between the association and the dangote refinery. Instead, he emphasized the need for transparent arrangements that support stable distribution and eliminate fuel scarcity.

“Our main interest is to have oil products offered at a reasonable price consistently, in a way that there is no stock-out and Nigeria is no longer queuing for fuel,” Ohia said.

While recognizing Dangote as the main player in the purification room, Ohia highlighted the core problem of access and price.

“The question is: How much is the price he offers to us, and do we really have access to buy these products from him?” He asked.

He noted that Dappman members had developed a broad distribution infrastructure over the past two decades, with depots located in Lagos, Warri, Port Harcourt, and Calabar. According to him, utilizing existing facilities will increase national supply.

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“What we ask for Dangote to do is use this depot that already exists for us to meet Nigeria’s demands,” he said.

Overcoming public speculation about the subsidized agenda, Ohia stressed that the association is not looking for government support, but a fair business involvement.

“We are a businessman; he is a businessman. We do not ask for subsidies. We negotiate and are still negotiating to see how he can bridge the gap,” he explained.

Ohia further shows that international practice supports the refineries that work with large-scale off-takers to support sustainable production and distribution.

“Ideally, the refinery emphasizes the evacuation of bulk through off-takers that can lift large amounts and allow sustainable production. Relying on only the sale of Retail Gantry cannot meet national demand,” he said.

According to him, Dappman had approached Dangote before the start of the refinery operation, looking for mass supply arrangements. However, no agreement was achieved.

“On the contrary, he prefers to work with several selected partners, which includes one or two of our members. We believe the system is open, not controlled, will help the country,” Ohia said.

He also noted that many Dappman members operated hundreds of retail outlets, but limited supply had prevented them from meeting consumer demand.

“The numbers are not lying; whatever is provided now does not meet full market needs. Mass shipping to the depot is needed if we have to serve the Nigerians effectively,” he said.

The conversation came in the midst of a recent dangote investment in 4,000 trucks collected with compressed natural gas (CNG) for the distribution of products nationally-a marketer movement that could potentially influence the refinery that should not be on the downstream sector.

Responding to the ongoing debate, billionaire businessman Femi Otedola urged Dappman to embrace changes in developing markets, showing that they explore strategic businesses such as taking over the Harcourt Port refinery instead of opposing the dangote distribution model.

Meanwhile, the President of the Nigeria Retail Oil Retail Owner Association, Billy Gilly-Harris, questioned the effectiveness of only relying on new trucks, which stated that 4,000 units would not be enough to meet national demand.

Responding to Dappman’s concerns, the new Dangote Petroleum Refinery issued a statement that rejected the claim that they were responsible for making a hidden subsidy regime, calling such accusations “wrong and baseless.” The company reiterates that they sell products based on approved production costs and margins.

He also insisted that logistics costs must be borne by marketers, which stated that because the Federal government removed fuel subsidies in May 2023, all downstream operators are expected to manage their own transportation and delivery processes.