All We Ask For Is Partnership With Dangote — DAPPMAN

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has urged the Dangote Refinery to adopt an open-door supply policy and provide marketers with fair access to petroleum products at reasonable prices.

Speaking on Channels Television’s breakfast programme, The Morning Brief on Wednesday, DAPPMAN spokesperson Ikem Ohia argued that partnership with the Refinery would guarantee steady fuel availability across the country.

He debunked a widespread notion that the Association conflicted with the Dangote Refinery, adding that all they wanted was collaboration that would help eliminate fuel queues and ensure Nigerians benefit from a stable supply.

“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 stated.

He explained that while Dangote Refinery is currently the dominant supplier, a development the marketers welcomed, the core challenge was access and pricing.

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

To efficiently move petroleum products across the country, Ohia said DAPPMAN members have, for more than 20 years, built a robust distribution network, with depots strategically located in Calabar, Port Harcourt, Warri, and Lagos.

“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 said.

Dismissing suggestions that marketers asked for subsidies, the spokesperson stressed that the matter was purely commercial.

“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,” Ohia said.

He further explained that most global refineries supply through two models- wholesale bulk lifting by vessels and ex-gantry 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 warned.

According to Ohia, DAPPMAN had reached out to Dangote Refinery before production started, seeking collaboration to take products in bulk, but understanding has yet to be firmly 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 said.

Ohia added that many DAPPMAN members also operate retail networks of up to 300 stations that could distribute products nationwide, but currently face restricted supply.

“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 said.

Clarification by the Association followed recent controversies surrounding the distribution of petroleum products across the country.

The Dangote Refinery had invested billions into the purchase of 4000 CNG-powered trucks for nationwide fuel supply; however, the marketers have argued that the Refinery was tending towards monopolising the downstream sector.

The DAPPMAN-Dangote rift soon degenerated, with businessman and billionaire, Femi Otedola, on Tuesday, wading into the matter, advising the oil marketers to consider restructuring in line with the evolving market dynamics in the downstream sector of the oil and gas industry.

Otedola advised DAPPMAN to restructure and consider buying over the Port Harcourt Refinery to stay relevant in the downstream business, instead of “resisting progress”.

While appearing on Channels Television’s The Morning Brief on Tuesday, President of the Petroleum Products Retail Outlets owners Association of Nigeria (PETROAN), Billy Gilly-Harris, argued that Dangote Refinery’s 4000 trucks were not enough to ensure a stable and efficient product supply to the nooks and crannies of the country.