Fuel Supply Tussle: Marketers Urge Dangote to Cut Prices, Open Access to Depots

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has called on the Dangote Petroleum Refinery to widen access to fuel supply and ensure products are sold at more affordable rates.

Speaking on Channels Television’s The Morning Brief on Wednesday, DAPPMAN spokesperson, Ikem Ohia, said closer collaboration between the refinery and marketers would guarantee steady distribution and help end recurring fuel queues nationwide.

Ohia dismissed speculations of a clash with Africa’s largest refinery, stressing that marketers only want a transparent supply arrangement that guarantees regular access.

“Our key interest is to have petroleum products offered at reasonable prices consistently, in a way that there’s no stock-out and Nigerians no longer queue for fuel,” he said.

While acknowledging Dangote Refinery’s dominance in the market, he maintained that access and pricing remain critical.

“The question is: at what price does he offer us, and do we actually have access to purchase these products from him?” Ohia asked.

He noted that for more than two decades, DAPPMAN members have invested in a vast distribution network with depots in Lagos, Warri, Port Harcourt, and Calabar. He urged the refinery to leverage these facilities to reach Nigerians more effectively.

“What we are asking Dangote to do is to use these depots that are already in existence for us to meet the demands of Nigerians,” he added.

Ohia rejected claims that marketers were lobbying for subsidies, clarifying that negotiations with the refinery were focused on bridging supply and pricing gaps.

Globally, he explained, refineries typically rely on bulk supply through off-takers to keep production continuous, warning that retail gantry sales alone cannot meet national demand.

DAPPMAN, he said, had approached Dangote for bulk supply even before production began, but the refinery chose to work with only a select few partners. “We believe an open system, not a controlled one, will help the country,” he argued.

He also noted that many members of the association own hundreds of retail outlets nationwide but cannot meet demand due to restricted supply.

“Figures don’t lie; whatever is supplied now doesn’t meet full market needs. Bulk deliveries to depots are necessary if we must serve Nigerians effectively,” he said.

The conversation comes as Dangote invests in 4,000 CNG-powered trucks for nationwide distribution—an approach some marketers argue could hand the refinery too much control of the downstream sector.

On Tuesday, billionaire businessman Femi Otedola urged marketers to adapt to market realities instead of opposing Dangote’s distribution model, suggesting they restructure and even consider acquiring the Port Harcourt Refinery.

Similarly, the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN) president, Billy Gilly-Harris, said the 4,000 trucks were insufficient to sustain steady nationwide supply.

Meanwhile, Dangote Refinery has dismissed subsidy claims by marketers as “false and unfounded,” insisting that products are sold strictly at production costs and regulated margins.

The refinery also maintained that logistics remain the responsibility of marketers, stressing that fuel subsidy was abolished by the Federal Government in May 2023.