DAPPMAN accuses Dangote Refinery of anti-competitive pricing practices
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has accused the Dangote Refinery of engaging in pricing strategies designed to create financial pressure on fuel importers.
In a statement issued by the association’s Executive Secretary, Mr. Olufemi Adewole, DAPPMAN alleged that the refinery frequently reduces its pump prices at carefully timed intervals—particularly when other importers have active cargoes either in transit or already in storage.
“These sudden price cuts create shocks in the market, disrupting competition and placing significant financial strain on other importers, including some of Dangote’s own domestic customers,” Adewole stated.
He further criticized the refinery for offering lower prices to international buyers while charging higher rates to local marketers.
“This contradicts its public claims of prioritizing Nigerian consumers and imposes an unnecessary burden on local businesses already operating within tight margins,” he added.
Addressing separate allegations, Adewole firmly rejected any insinuation that DAPPMAN members are involved in the importation or distribution of substandard petroleum products.
He noted that all imported products undergo independent testing by regulator-approved laboratories, in line with standards set by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
“Ironically, the same refinery claiming product superiority has, on multiple occasions, applied for waivers to distribute products with sulphur levels above approved thresholds,” Adewole said.
“This raises questions about consistency and credibility when it comes to product quality.”
He emphasised that Nigeria’s downstream petroleum sector is strictly regulated, transparent, and aligned with international best practices.
“Unfounded attempts to question the integrity of other compliant players are both unfair and misleading,” he noted.
DAPPMAN also took issue with Dangote’s claim of providing “free delivery” to marketers.
According to Adewole, marketers are required to lift at least 25 percent of their allocated volumes directly from the refinery and must do so using Dangote-owned trucks, for which they pay commercial transport rates based on destination.
“This arrangement increases both logistical and financial pressures on marketers,” he explained.
“It also limits operational flexibility and challenges the narrative that the refinery is easing costs for the domestic market.”
While acknowledging the importance of the Dangote Refinery to Nigeria’s fuel supply, Adewole stressed that the downstream sector cannot be sustained by a single facility.
“The industry is an interconnected system—made up of refiners, depots, marketers, transporters, and regulators—working together to ensure nationwide fuel availability under often difficult conditions,” he said.
He cautioned against narratives that centralize credit, shift responsibility, or damage the confidence of stakeholders across the value chain.
“DAPPMAN remains committed to promoting fair competition, transparency, and collaboration within Nigeria’s petroleum industry,” Adewole concluded.
He called on all stakeholders, including the Dangote Refinery, to adopt responsible communication practices and avoid divisive narratives that could destabilize the market.
“The future of Nigeria’s energy sector lies in regulatory compliance, cooperation, and mutual respect—not in monopolistic behavior or one-sided storytelling,” he added.
