Home Business Marketers Urge Dangote to Open Fuel Supply Channels, Offer Competitive Pricing

Marketers Urge Dangote to Open Fuel Supply Channels, Offer Competitive Pricing

by Joy: News Admin

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has called on the Dangote Petroleum Refinery to make its fuel more affordable and accessible, stressing that a transparent and inclusive distribution model is crucial to ending fuel scarcity across Nigeria.

Speaking on Channels Television’s “The Morning Brief” on Wednesday, DAPPMAN’s spokesperson, Ikem Ohia, clarified that there is no conflict with the Dangote Refinery but emphasized that marketers are simply demanding fairness in pricing and access.

“Our primary concern is ensuring petroleum products are consistently available at reasonable prices, so Nigerians no longer have to queue for fuel,” said Ohia.

Concerns Over Restricted Access

While acknowledging the refinery’s dominance in the market, Ohia questioned its current supply model, which appears to limit access to a select group of partners.

“The real issue is: what prices are these products being offered to us, and do we genuinely have access to them?” he asked.

Ohia highlighted that DAPPMAN members have, over the last two decades, built robust distribution infrastructure, including depots in Lagos, Warri, Port Harcourt, and Calabar. He urged Dangote to leverage these existing assets to expand supply and ease distribution challenges nationwide.

“We’re simply requesting that Dangote utilize the already-existing depots so we can better meet the fuel demands of Nigerians,” he stated.

“We’re Not Asking for Subsidies” – Marketers Clarify

In response to accusations that marketers are lobbying for a return to fuel subsidies, Ohia was unequivocal.

“We are businessmen. Dangote is a businessman. We are not asking for subsidies. We’re negotiating commercial terms to find a sustainable middle ground,” he explained.

He pointed out that, globally, refineries operate primarily through bulk distribution to off-takers, which allows for uninterrupted production and efficient supply chains. He warned that relying solely on retail gantry sales is insufficient to meet Nigeria’s energy needs.

Dangote’s 4,000 Trucks Raise Monopoly Concerns

The ongoing debate comes amid reports that the Dangote Group has acquired 4,000 CNG-powered trucks for nationwide distribution. While the move is seen as an effort to improve last-mile delivery, marketers warn it could give Dangote excessive control over the downstream sector.

Ohia noted that limited supply is already affecting many of DAPPMAN’s members—some of whom operate over 300 filling stations—and urged for bulk supply to licensed depots to ensure equitable distribution.

“The numbers don’t lie. Current supplies fall short of national demand. Bulk deliveries to depots are essential if we’re to serve Nigerians effectively,” he emphasized.

Stakeholders React

On Tuesday, billionaire investor Femi Otedola weighed in, urging marketers to adapt to evolving market dynamics. He advised them to consider innovative solutions such as acquiring and operating the Port Harcourt Refinery, rather than resisting Dangote’s business model.

Similarly, Billy Gilly-Harris, President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), expressed doubts that 4,000 trucks alone would be sufficient to meet nationwide fuel demand.

Dangote Refinery Responds to Allegations

In response to DAPPMAN’s claims of over ₦1.5 trillion in hidden subsidies, the Dangote Refinery issued a statement strongly denying the allegation, calling it “false and unfounded.”

The refinery clarified that its pricing structure is based solely on production costs and government-regulated margins, and emphasized that logistics costs remain the responsibility of the marketers.

“Fuel subsidy was officially removed by the Federal Government in May 2023. All marketers are expected to handle transportation logistics independently,” the statement read.

Conclusion

As Nigeria continues to navigate post-subsidy fuel supply dynamics, calls for a more inclusive and transparent distribution framework are growing louder. While Dangote’s refinery is a key player, stakeholders insist that collaboration—not monopoly—must define the path forward to sustainable energy access.

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