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- Depot owners have raised concerns about the new petrol price of the Dangote refinery and its impact on their business
- They accused Africa richest man of using pricing to disrupt the market and weaken competitors
- Dangote has responded to the allegations and also accused the depot owners of fighting against his refinery success
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has accused the Dangote Petroleum Refinery of adopting market-disruptive practice.
The DAPPMAN alleged that the recent fuel price cuts are aimed at weakening competitors rather than serving patriotic goals.
Photo: Bloomberg/contributor
Source: Getty Images
In a statement signed by its executive secretary, Olufemi Adewole, the association said the refinery frequently slashes prices at critical moments when other importers have active cargoes at sea or in storage, exposing marketers to heavy financial losses.
DAPPMAN argued that such tactics undermine healthy competition in a market still struggling to stabilise after the federal government’s removal of fuel subsidies and deregulation of the downstream sector.
The group also claimed that Dangote offers cheaper prices to international buyers than to Nigerian marketers, a move it described as inconsistent with the company’s public stance of prioritizing the domestic market.
Adewole said:
“Such pricing patterns place unnecessary strain on domestic businesses already operating on tight margins.”
Substandard petrol in Nigeria allegations
DAPPMAN dismissed suggestions that independent marketers are behind the distribution of substandard fuel, stressing that all imports are tested in regulator-accredited laboratories under the supervision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
Instead, the association alleged that Dangote has sought waivers to distribute products with sulphur levels above approved thresholds, raising questions about its position on product quality.
While acknowledging the refinery as a “historic infrastructure accomplishment,” DAPPMAN cautioned against portraying it as the sole solution to Nigeria’s fuel supply problems.
Photo: Bloomberg/contributor
Source: Getty Images
“The refinery is a valuable contributor, but not a messiah.”
It warned that dominance narratives could distort investor perception and destabilize confidence in the sector.
The association called for balanced recognition of all stakeholders—including marketers, depots, transporters, and regulators who it said have kept Nigeria’s fuel supply chain functional for decades under difficult conditions.
Dangote replies Depot owners
The Dangote Group denied allegations by DAPPMAN that its refinery sells petrol to international traders at cheaper rates than those offered to Nigerian marketers.
The refinery argued that if the marketers’ true objective was to serve the Nigerian domestic market, they should have partnered directly with the Dangote refinery.
Petrol price drop by N259
Earlier, Legit.ng reported that Africa’s richest man Aliko Dangote has confirmed that the Dangote Petroleum Refinery has cut petrol prices by N259 in the past year.
Dangote who was also reacting to intense criticism from NUPENG and the DAPPMAN revealed the impacts of his refinery.
Africa richest man also spoke on its 650,000 barrels-per-day refinery, Africa’s largest has deployed 1,000 Compressed Natural Gas (CNG)-powered trucks as part of its direct fuel distribution programme.
The initiative, according to Dangote, will create 24,000 jobs in the first phase.
Source: Legit.ng
