The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) is seeking a partnership with the Dangote Refinery to ensure a steady supply of petroleum products across the country. According to DAPPMAN spokesperson, Ikem Ohia, the association wants the refinery to adopt an open-door supply policy, providing marketers with fair access to products at reasonable prices. This, Ohia argued, would guarantee stable fuel availability and eliminate queues.
Speaking on a television program, Ohia debunked the notion that DAPPMAN is in conflict with the Dangote Refinery, stating that the association’s primary interest is to have petroleum products offered at reasonable prices consistently. He explained that while the Dangote Refinery is currently the dominant supplier, the core challenge is access and pricing. Ohia questioned the price at which the refinery offers products to marketers and whether they have access to purchase these products.
DAPPMAN members have built a robust distribution network over 20 years, with depots strategically located in major cities. Ohia urged the Dangote Refinery to utilize these existing depots to meet the demands of Nigerians. He emphasized that the matter is purely commercial, with DAPPMAN seeking a negotiation to bridge the gap in pricing. Ohia noted that most global refineries supply products through wholesale bulk lifting by vessels and ex-gantry retail sales, and that relying solely on retail gantry sales cannot meet national demand.
The association had reached out to the Dangote Refinery before production started, seeking collaboration to take products in bulk. However, an understanding has yet to be firmly reached, with the refinery preferring to work with a few selected partners. Ohia believes that an open system, rather than a controlled one, would benefit the country. Many DAPPMAN members operate retail networks of up to 300 stations, but currently face restricted supply. Ohia argued that bulk deliveries to depots are necessary to serve Nigerians effectively.
The clarification by DAPPMAN follows recent controversies surrounding the distribution of petroleum products. The Dangote Refinery’s investment in 4000 CNG-powered trucks for nationwide fuel supply has been seen as an attempt to monopolize the downstream sector. The rift between DAPPMAN and the Dangote Refinery has drawn comments from industry stakeholders, including businessman Femi Otedola, who advised DAPPMAN to restructure and consider buying the Port Harcourt Refinery to remain relevant. The situation highlights the need for a collaborative approach to ensure a stable and efficient supply of petroleum products in Nigeria.