The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) recently issued a firm response to allegations made by Dangote Refinery, rejecting claims that oil marketers importing petrol at rates lower than the refinery’s prices are bringing in substandard fuel or working with international traders to flood Nigeria with low-quality products. Dangote Refinery’s comments, made on Sunday, were met with immediate backlash from DAPPMAN, which represents a significant portion of the downstream oil sector in Nigeria.
According to a Monday statement by Olufemi Adewole, DAPPMAN’s Executive Secretary, the association's members strictly adhere to industry standards and conduct their operations with integrity, underscoring that they are committed to the welfare of Nigerian citizens rather than prioritizing profits over quality. He firmly denied the accusation that DAPPMAN members would compromise on fuel quality, describing it as an unfounded and damaging claim.
In his statement, Adewole explained that DAPPMAN’s members determine their pricing based on international market forces, with landing costs carefully calculated to reflect the latest conditions in global markets. He emphasized that the pricing templates are available for public review, adding that prices in the international market fluctuate due to various factors beyond the control of Nigerian importers. The notion that lower landing costs imply lower quality fuel, he said, is “preposterous and fallacious.” Furthermore, he pointed out that the Dangote Refinery has thus far not disclosed its own pricing or cost details, leaving them unavailable for public examination.
Adewole voiced concerns about the potential consequences of such public allegations, stressing that casting oil marketers in a negative light does not foster goodwill within the industry. He argued that promoting transparency, fairness, and fair competition among all players—including foreign refineries—would be a more effective approach to encourage mutual trust and cooperation. He added that public accusations would only harm the working relationship between the refinery and local marketers, which is crucial to ensuring efficient fuel distribution.
Furthermore, Adewole highlighted the refinery’s recent announcement of a 500 million litre fuel reserve, questioning why, despite such a large stock, the refinery has still been rationing fuel to marketers. This development, he noted, took DAPPMAN members by surprise and raised additional questions about the refinery’s approach to supply and distribution.
In conclusion, DAPPMAN reiterated its commitment to playing by industry rules and supporting a competitive, transparent market free from dominant practices that could harm Nigerian consumers or reduce access to fuel. The association assured the public that its members would continue to operate in a way that prioritizes the welfare of citizens and respects fair competition.