The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has strongly criticized Dangote Refinery’s fuel distribution model, describing it as misleading and harmful to the petroleum industry.
This reaction follows the recent clash between the National Union of Petroleum and Natural Gas Workers (NUPENG) and Dangote Refinery over its plan to distribute petroleum products across Nigeria.
On Thursday, Dangote Refinery announced that it would roll out nationwide fuel and diesel distribution using 4,000 compressed natural gas (CNG) trucks. However, the move sparked major backlash from industry stakeholders.
DAPPMAN’s Position
According to DAPPMAN, Dangote’s claims of providing “free delivery” to marketers are deceptive.
The group revealed that marketers are compelled to lift at least 25% of their allocated products directly from Dangote’s refinery gantry, and only through Dangote-owned trucks. These trucks, they said, are charged at commercial rates depending on the delivery location.
DAPPMAN stressed that this policy:
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Places extra financial burdens on marketers
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Restricts operational flexibility
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Misrepresents the idea of cost relief for the local market
Impact on Competition
DAPPMAN further accused Dangote Refinery of strategically reducing fuel prices at times when other importers already had cargoes in transit or storage tanks.
These sudden price cuts, they argued, caused market disruptions, forced financial losses on competitors, and weakened the overall stability of the downstream sector.
Preferential Pricing
Perhaps most controversially, DAPPMAN claimed that Dangote Refinery sells fuel at lower prices to international buyers, while charging higher prices to Nigerian marketers.
This practice, they said, contradicts Dangote’s public image of prioritizing Nigerian consumers and places local businesses under severe pressure.
“These actions are not patriotic gestures,” DAPPMAN emphasized.
“They are calculated moves that undermine healthy competition and weaken domestic petroleum marketers.”
Conclusion
DAPPMAN’s criticism sheds light on the growing tension between Dangote Refinery and key players in Nigeria’s petroleum sector. While the refinery’s distribution plan may appear innovative on the surface, industry stakeholders insist it creates more problems than solutions, raising concerns about competition, fairness, and the survival of local businesses.
