In response to accusations made by the Dangote oil refinery management that the Nigerian Midstream and Downstream Petroleum Regulatory Authority had been granting licenses to marketers arbitrarily to import what they described as dirty refined products into the nation, the Depot and Petroleum Products Marketers Association of Nigeria denied importing dirty fuel into Nigeria, claiming that the diesel from the refinery contains more sulfur than imported fuel.
Olufemi Adewole, the secretary of DAPPMAN, provided our correspondent with a statement from the association’s management that said, “We would like to state that the information from the Dangote Refinery Management is laced with Inaccuracies and emphatically that no member of the association and indeed, no private fuels depot has imported into the country any fuel with specification that is outside of the regulation other than what is currently approved by the Nigerian Midstream and Downstream Regulatory Authority.”
DAPPMAN had reported that the downstream regulatory body had recently objected to offtakes by its daughter vessels from import mother vessels through ship-to-ship operations, which typically occur offshore Lome. It claimed that downstream operators fiercely opposed and resisted this move until it was rescinded.
“DAPPMAN recalls that between February and May 2024, the NMDPRA had allowed AGO imports with a maximum sulphur content of 200/ppm, however, this was followed by another move, by the regulator, to fast forward the country’s target date of the implementation of the 50/ppm sulphur limitation on PMS and AGO imports, from 31st December 2024 to 1st June 2024, thereby limiting all marketers and depots’ AGO source to Dangote Refinery even though the latter was yet to install its desulphurization equipment as the sulphur in its blends of AGO presently exceed 50/ppm.
“This again was resisted by DAPPMAN in its letter to the NMDPRA which was dated 10th June 2024 to warn and alert the regulator not to ‘inadvertently promote and introduce a monopoly into the sector,” DAPPMAN’s statement read.
The depot owners association went on to say, “It is bewildering to us that the Management of Dangote Industries (including the Dangote Refinery), who are very much aware of these facts, could claim that the NMDPRA has been granting licenses indiscriminately to marketers to import dirty refined products into the country. The latter has shown stiff resistance at every attempt to impose a Dangote Refinery monopoly into the downstream.
“Their current blend of AGO, with reported sulphur contents of 1200/ppm is technically classified as ‘dirty fuel’ and grossly above the 200/ppm imported by any marketer or depot owner,” DAPPMAN stated.
DAPPMAN emphasized that the Dangote refinery’s “current practice of cheaper bulk sales prices to international buyers at the detriment of Nigerian buyers calls to question their patriotism to the country,” even though it acknowledged that the refinery is a business entity free to adopt any model that suits its management.
The statement continued, “It will not be in the interest of the Nigerian fuel end-user for several Nigerian marketers to have recently received offers from foreign trading firms for Dangote refinery cargoes at rates that are significantly lower than what they were directly offered by Dangote Refinery.”
“The Dangote refinery’s success will undoubtedly be a source of pride for the country,” the statement said in its conclusion. However, all downstream operators and their operations must adhere to the Petroleum Industry Act 2021, which forbids “monopolies” of any kind.
“DAPPMAN will continue to collaborate with all relevant parties, including the Dangote refinery, voluntarily offering all Nigerians competitively priced, safe, and healthy fuel options for their daily activities.”
The Dangote Group official, who wished to remain anonymous, said our correspondent that the reason fuel costs more at the Dangote refinery is because foreign oil companies won’t sell their crude oil to it.
The National President of IPMAN, Abubakar Maigandi, accused Dangote on Monday of being the reason why operators imported diesel since his diesel was more costly.
According to Maigandi, Dangote disregarded marketers’ recommendations to lower the price of aviation fuel and diesel at the moment in order to outbid rivals in the market.
The head of IPMAN insisted that if the goods from the Dangote refinery were less expensive, no one would be enticed to import the allegedly filthy fuel.
“The price of the Dangote diesel is the main obstacle. We’re expecting him to take a pay cut. He ought to down the speed a little bit.
“It is his fault that individuals import diesel into Nigeria from other nations.” It is as a result of his cost. As you recall, I previously suggested that he lower his price to deter other merchants from importing. He is more expensive. Why should people shop outside if it’s lower? said the marketer.
The Nigerian Midstream and Downstream Petroleum Regulatory Authority was accused by the Dangote refinery executive of arbitrarily awarding licenses to marketers who then imported contaminated refined products into the nation.
