Monopoly Concerns: DAPPMAN Urges FG to Address Dangote Refinery’s Pricing
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has been accused by Devakumar Edwin, Vice President of Dangote Industries Limited, of reporting the Dangote Refinery to President Bola Tinubu over its low-priced diesel products. Edwin made this claim during a space session organized by Nairametrics on X, alleging that oil marketers were concerned the refinery’s reduced prices were hurting their businesses.
Edwin stated that due to Dangote’s lower diesel prices, oil marketers have been boycotting its diesel and aviation fuel, with the refinery struggling to sell about 29 tankers of diesel daily. According to him, over 95% of petroleum product importers in Nigeria are not sourcing from the Dangote refinery, leading the plant to export most of its diesel and aviation fuel due to low local demand.
“Petroleum product marketers in Nigeria have written to President Bola Tinubu, complaining that the refinery’s local diesel prices, which have dropped from N1,200 to N900 per litre, are negatively impacting their businesses,” Edwin claimed.
However, DAPPMAN has denied reporting the refinery in the manner described by Edwin. In a letter addressed to Senate President Godswill Akpabio on July 4, 2024, and signed by Executive Secretary Olufemi Adewole, DAPPMAN highlighted concerns within the Downstream Petroleum Industry, calling for the preservation of deregulation and free market policies as outlined in the Petroleum Industry Act (PIA) of 2021.
The letter, 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,” emphasized the need for the Nigerian Midstream and Downstream Petroleum Regulatory Authority to uphold its legislative mandate with consistent and fair policies.
DAPPMAN acknowledged the National Assembly’s support for the Dangote refinery but cautioned against creating a monopoly in the supply of Automotive Gas Oil (AGO) in Nigeria. The association expressed concerns that the dominance of Dangote Refinery could stifle competition and leave Nigerians with fewer and potentially more expensive options, similar to Dangote’s presence in the cement, sugar, salt, and noodles industries.
According to DAPPMAN, Nigerian entrepreneurs have already invested over N3 trillion in the downstream petroleum sector, and a monopoly would undermine the industry and the broader economy
