DAPPMAN Refutes Dangote Refinery’s Allegations, Denounces Fuel Quality Claims
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has rejected the allegations from Dangote Refinery’s management, which claimed that fuel marketers are bringing substandard fuel into Nigeria with the approval of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
DAPPMAN, in a statement released last night, asserted that no member of their association or any private fuel depot has imported fuel that violates NMDPRA regulations.
“Recently, Dangote Industries Limited voiced concerns, accusing the NMDPRA of recklessly issuing licenses to marketers for importing substandard refined products into Nigeria.
DAPPMAN firmly declared that no member or private depot has brought in fuel that does not conform to the NMDPRA’s approved specifications. They labeled the information from Dangote Refinery’s management as incorrect.
DAPPMAN highlighted that the NMDPRA initially objected to the practice of offloading by smaller vessels from larger vessels via ship-to-ship transfers off the coast of Lome. Downstream operators strongly opposed this stance, leading to the regulator’s withdrawal of its opposition.
The association recalled that from February to May 2024, the NMDPRA allowed diesel imports with a maximum sulphur content of 200 parts per million (ppm). However, the regulator later moved up the implementation date for the 50 ppm sulphur limit on petrol and diesel imports from December 31, 2023, to June 1, 2024.
DAPPMAN argued that this regulatory action essentially restricted all marketers and depots to sourcing diesel from Dangote Refinery, even though the refinery had not yet equipped itself with desulphurisation technology, and its diesel blends currently exceeded the 50 ppm sulphur threshold.
DAPPMAN stated in a letter to the NMDPRA dated June 10, 2024, that the regulator’s move to potentially foster a monopoly was challenged by the association.
DAPPMAN emphasized that despite resisting efforts to create a monopoly around Dangote Refinery in the downstream sector, and given that the refinery’s latest diesel production reports a sulphur content of 1200 ppm, it is puzzling why Dangote Industries’ management would accuse the NMDPRA of indiscriminately licensing the importation of ‘dirty refined products’ into Nigeria.
According to the marketers, Dangote Refinery’s current diesel blend, with a sulphur content reported at 1200 ppm, technically qualifies as ‘dirty fuel,’ far exceeding the 200 ppm limit that other marketers and depot owners adhere to.
While acknowledging Dangote Refinery’s right to pursue any business strategy, DAPPMAN criticized the refinery’s policy of offering lower bulk sales prices to international buyers compared to Nigerian buyers, questioning the company’s national loyalty.
The association also pointed out that several Nigerian marketers received offers for Dangote Refinery cargoes from international trading firms at much lower prices than those directly offered by the refinery, which they argued is against the interests of Nigerian fuel consumers.
“There is no doubt that a successful Dangote Refinery would be a source of national pride. However, all downstream operators must comply with the Petroleum Industry Act (PIA) 2021, which opposes monopolistic practices.
DAPPMAN affirmed its commitment to working with all stakeholders, including Dangote Refinery, to ensure the delivery of safe, quality fuels to all Nigerians at competitive prices, supporting affordable fueling options for daily needs,” the statement concluded.
