Domestic Discontent Over Pricing Strategy
Some fuel importers and marketers in Nigeria have accused the Dangote Refinery of offering petrol to international traders at a cheaper rate than to Nigerian marketers, sparking outrage within the petroleum sector.
The Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) confirmed these concerns in separate interviews.
According to industry players, Dangote Refinery sells petrol to international traders in Lomé, Togo, at ₦65 cheaper per litre compared to prices offered to local marketers in Nigeria.
okay.ng reports that this alleged disparity has raised questions about the refinery’s commitment to supporting the Nigerian market.
Concerns from Depot and Petroleum Marketers
DAPPMAN’s Executive Secretary, Olufemi Adewole, revealed that some members purchased Dangote’s petrol in Togo from international traders at prices significantly lower than what the refinery offered within Nigeria.
“Dangote is selling to international traders at N65 lower than what he offers in Nigeria, or how is it possible for some of our members to buy from someone who bought from Dangote?” Adewole asked.
He further alleged that despite sending product volume requests twice to Dangote Refinery, the association had not received adequate allocations.
Competitive Pressure and Market Manipulation Allegations
Adewole also criticized Dangote’s periodic price reductions, suggesting they were strategically timed to disrupt competition whenever other importers had active cargoes arriving.
He said, “So, anytime our cargoes are coming, we expect him to reduce the price. He may give a different reason for the reduction.”
He emphasized that the timing of these price cuts placed domestic marketers at a disadvantage, undermining stability in Nigeria’s downstream sector.
PETROAN’s Confirmation
Billy Gillis-Harry, National President of PETROAN, supported DAPPMAN’s claims.
“Exactly, DAPPMAN said the correct thing. It is true. We don’t want to be saying everything. But the way things are going, one day we will say everything,” Gillis-Harry warned.
Dangote Refinery’s Response
The refinery, however, dismissed the allegations. A spokesperson mocked the claims, saying, “We now know who is behind NUPENG. Our free delivery starts Monday.”
The refinery also questioned DAPPMAN’s buying sources, asking why they had shifted from Russia and Malta to Lomé.
Industry Concerns Over Union Dispute
The refinery is also in conflict with the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), which accused Dangote of anti-union practices, including preventing truck drivers from joining the union. NUPENG has threatened industrial action.
Adewole warned that the dispute between Dangote and NUPENG could destabilize the downstream sector and affect Nigerians.
Call for Level Playing Field
DAPPMAN insisted that Dangote must provide discounts to account for freight costs and logistical expenses if local marketers are to compete fairly.
Adewole explained, “Dangote has to give us a discount for the freight cost and other costs that we incur between his jetty and our jetty so that we can sell at the same price, and then we’ll be competitive.”
Despite acknowledging the refinery’s importance, Adewole stressed that Dangote should not be seen as the sole backbone of the Nigerian petroleum sector, which still relies on multiple importers.
New Fuel Distribution Strategy
Meanwhile, Dangote Refinery announced it would launch a new compressed natural gas-powered trucking system and reduce gantry prices to ₦820 per litre, which it said would lower pump prices nationwide.
