DANGOTE-REFINERY
PicNews
Fuel importers in Nigeria have accused the Dangote refinery of selling petrol to international traders at N65 per liter cheaper than what they offer to local marketers. The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) confirmed that some members have bought Dangote’s petrol from international traders in Lomé, Togo, at prices lower than what was offered locally by the refinery.
DAPPMAN’s Executive Secretary, Olufemi Adewole, stated that importers had made efforts to buy petrol from the Dangote refinery, but the price was higher. He emphasized the need for discounts to cover freight and other costs between Dangote’s jetty and local marketers’ depots, allowing them to sell at competitive prices. Without these discounts, Adewole warned that importers will continue to source fuel from abroad where prices are cheaper.
PETROAN President Billy Gillis-Harry backed DAPPMAN’s claims, confirming that Dangote’s petrol was indeed cheaper in Togo. A major importer also revealed that his company refused to buy from Dangote due to unfavorable margins. The importers alleged that Dangote’s price cuts were strategically timed to coincide with the arrival of imported cargoes, creating price shocks that undermine competition and impose financial strain on fellow market participants.
The Dangote refinery dismissed the allegations, suggesting DAPPMAN might be behind the recent attack against it by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG). The refinery plans to roll out compressed natural gas-powered trucks as part of its logistics-free distribution program aimed at significantly reducing fuel prices nationwide. Despite this, DAPPMAN and PETROAN insist that the refinery’s products are cheaper in Togo due to the price disparity.
The associations argue that Nigeria’s downstream sector cannot rely solely on the Dangote refinery, which currently supplies only 30-35% of national demand. They emphasized that other marketers remain crucial to downstream stability and that Dangote’s practices are undermining competition and putting local businesses at risk.
