Petrol Price: Preposterous, Fallacious – Again, Oil Marketers Knock Dangote

The Depots and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has disputed a recent claim by Dangote Refinery, which suggested that oil importers offering petrol at prices lower than those from the refinery are bringing in substandard fuel and collaborating with international traders to flood Nigeria with low-quality products.

Naija News reports that Dangote Refinery made this assertion on Sunday, sparking a response from DAPPMAN.

In a statement issued on Monday, DAPPMAN’s Executive Secretary, Olufemi Adewole, emphasized that its members operate responsibly, rejecting any allegations of compromising fuel quality for profit.

“The marketers in the downstream sector are patriotic Nigerians committed to serving the nation and would not stoop to defrauding citizens. Our members are here to provide value to Nigerians, not to exploit them,” he said.

Adewole explained that international market prices for petroleum products fluctuate based on market forces, and DAPPMAN’s members calculate landing costs accordingly, with templates publicly available.

“Prices of products in the international market are dynamic as they’re dictated by prevailing circumstances at every given situation. We calculate our landing costs based on the dynamics of market forces, and the templates are always in the public domain. To claim that if the landing cost of imported product happens to be lower than that of the refinery indicates importation of low quality product is not only preposterous, but also fallacious. In any case, the management of the refinery has, until now, kept its cost and prices close to its chest and put it away from public scrutiny,” Adewole stated.

He also argued that casting DAPPMAN members in a negative light would not promote goodwill from oil marketers.

“Transparency, fairness, and competition on equal terms with foreign refineries will encourage patronage, not public accusations,” he added.

Adewole noted that the refinery’s recent announcement of a 500 million litre fuel reserve came as a surprise to marketers, particularly as the refinery had been rationing the fuel available to them.

“If such a large stock exists, why is there rationing on what marketers can buy?” he questioned.

Reiterating their commitment, DAPPMAN assured that its members would continue to play by industry rules, advocating for a competitive, transparent market free from dominant practices.