The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has refuted allegations made by Devakumar Edwin, Vice President of Dangote Industries Limited, claiming the association reported the Dangote Refinery to President Bola Tinubu over its low-priced products.
Edwin had stated that oil marketers reported the refinery to the President, alleging its low-priced diesel was harming their businesses. However, DAPPMAN’s Executive Secretary, Olufemi Adewole, denied the claim.
DAPPMAN’s Letter to Senate President
A letter obtained by our correspondent revealed DAPPMAN’s concerns about the Dangote Refinery’s alleged monopoly in the downstream petroleum sector. The letter, addressed to Senate President Godswill Akpabio, highlighted issues requiring urgent intervention to sustain deregulation and free market policies.
Key Concerns
1. Monopoly: DAPPMAN alleged the Dangote Refinery’s dominance would deprive Nigerians of cheaper options and dictate prices without competing alternatives.
2. Sulphur Content: The refinery’s diesel product exceeds the 50ppm sulphur requirement, yet the regulator restricts imports, forcing marketers to source from Dangote.
3. Price Manipulation: Dangote Refinery’s price crashes harm marketers’ businesses.
4. Foreign Exchange: The refinery sells products to foreign traders at lower prices than local companies and demands payment in dollars.
Recommendations
DAPPMAN urged the government to:
1. Eliminate restrictions on marketers sourcing products from Dangote Refinery.
2. Allow marketers to import fuels meeting international standards.
3. Rehabilitate Port Harcourt and Warri Refineries to increase local refining capacity.
DAPPMAN’s Response
Olufemi Adewole stated that Devakumar Edwin’s comments did not accurately represent the association’s letter. “Compare the actual paragraph… and you’ll see the difference,” he said.
