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The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) has criticised the plan by the Dangote Refinery to slash petrol prices, arguing that the move undermines competition and strains other market players.
Dangote Refinery had announced that, starting Monday, petrol prices would drop from ₦865 per litre to ₦841 in Lagos and the South West and ₦851 in Abuja, Edo, and Kwara. The price cut is to coincide with the launch of its direct fuel distribution scheme.
In a statement on Saturday, DAPPMAN Executive Secretary Olufemi Adewole dismissed the refinery’s gesture as anything but patriotic. “Claims that repeated fuel price reductions by the Dangote Refinery are patriotic gestures ignore their timing and market impact. These reductions were often strategically timed when other importers had active cargoes at sea or in tanks, creating price shocks that undermined competition and imposed financial strain on fellow market participants, including the refinery’s own domestic customers,” he said.
Adewole also condemned the refinery for offering cheaper prices to international buyers while charging Nigerians more. “Even more concerning is the refinery’s pattern of offering lower prices to international buyers while quoting higher rates to local offtakers. This contradicts public-facing claims of prioritising Nigerians and places an unnecessary burden on domestic businesses already operating under tight margins,” he added.
Addressing the ongoing dispute between Dangote and the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), Adewole said DAPPMAN had observed the situation with concern. “While the matter may not directly concern our Association, we are alarmed by the tone, trajectory, and escalation of this issue. Beyond the reputational risks to various market participants, we are deeply concerned about the potential impact this may have on ordinary Nigerians, particularly in a downstream environment still stabilising post-deregulation.”
The association further rejected claims that downstream stability rests solely on Dangote Refinery. “While we welcome the Dangote refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 per cent of national demand. The balance continues to be supplied by responsible petroleum product marketers, including DAPPMAN members, who import and distribute under strict regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority,” Adewole stated.
Reaffirming it’s role in fuel distribution, DAPPMAN stressed its members have invested heavily in depots, trucking fleets, retail outlets, and logistics, ensuring uninterrupted access to fuel nationwide. “These contributions deserve recognition, not erasure. We reject any insinuation that DAPPMAN members deal in ‘substandard’ petroleum products. All imports are subject to independent, regulator-accredited laboratory testing in accordance with NMDPRA protocols and global quality standards,” the statement concluded.
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