The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has accused the Dangote Refinery of creating a monopoly in the supply of Automotive Gas Oil (AGO) to Nigeria’s downstream operators.
In a letter to the Senate President, Godswill Akpabio, DAPPMAN alleged that the refinery’s diesel product exceeds the required sulfur content, and the regulator has restricted other downstream operators from sourcing products elsewhere.
The letter signed by its Executive Secretary, Olufemi Adewole, was titled, “An Urgent Call For The Sustenance Of Deregulation And Free Market In The Downstream Petroleum Industry In Strict Compliance With The Petroleum Industry Act 2021”.
“We write to bring to the attention of the President of The Senate, some highlights of issues in the Downstream Petroleum Industry which require urgent intervention to engender the sustenance of deregulation and free market policies as intended by the PIA 2021.
“We recognise the need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority to remain committed to the legislation establishing it with consistent policies. Deregulation and a free market are critical for the survival of this Industry and stipulations must remain fair with consistent policies which are required to achieve the real intendment of deregulation and liberalisation of the petroleum downstream sector.
“We also recognise and note the recent and boisterous support for Dangote refinery by the leadership of the National Assembly during your recent visit to the refinery and we hereby state emphatically that the success of the refinery would indeed be a thing of pride and joy to all of us as Nigerians,” the letter read in part.
The association claims this creates a monopoly, depriving Nigerians of cheaper options and allowing Dangote Refinery to dictate prices.
DAPPMAN recommends that the government eliminate restrictions on marketers sourcing products from Dangote Refinery until the Port Harcourt and Warri Refineries are fully rehabilitated.
