Dangote Told To Make Fuel Affordable, Boost Distribution Across Nigeria

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has appealed to the Dangote Petroleum Refinery to make fuel supply more accessible and affordable to marketers, stressing that a transparent distribution system would help end fuel queues across the country.

Speaking during a live interview on Channels Television, the association’s spokesperson, Ikem Ohia, dismissed suggestions of a rift with the refinery but maintained that marketers were seeking fairness and sustainability in supply arrangements. He explained that the major concern was for petroleum products to be sold at reasonable prices and in adequate volumes, to ensure Nigerians no longer experience scarcity.

While acknowledging Dangote as the dominant supplier, Ohia questioned the refinery’s decision to limit supply to a few selected partners, pointing out that many marketers are left without access to purchase. He noted that for over 20 years, members of the association had built extensive distribution networks with depots in Lagos, Warri, Port Harcourt, and Calabar, and urged the refinery to leverage these facilities to meet national demand.

According to him, the association is not lobbying for subsidies but only negotiating on commercial terms to achieve fair pricing and efficient supply. He stressed that globally, refineries rely on bulk distribution through major off-takers as well as retail sales, and that Nigeria should not be an exception.

Concerns have also been raised over Dangote’s investment in 4,000 CNG-powered trucks for nationwide distribution, with marketers warning that such a fleet could give the refinery disproportionate control over the downstream sector. Ohia argued that restricted supply had already left some marketers, including operators of hundreds of filling stations, unable to meet consumer demand.

Industry reactions have been divided. Billionaire businessman Femi Otedola advised marketers to adjust to emerging market realities, suggesting that they should consider investing in the Port Harcourt Refinery rather than opposing Dangote’s distribution model. Similarly, the President of the Petroleum Products Retail Outlets Owners Association of Nigeria (PETROAN), Billy Gilly-Harris, observed that even Dangote’s 4,000 trucks would be insufficient to meet national demand.

In response, the Dangote Petroleum Refinery rejected claims of hidden subsidies amounting to over ₦1.5 trillion, describing them as baseless. The refinery stated that its products are priced strictly according to production costs and regulated margins, while logistics remain the responsibility of marketers. It reaffirmed that subsidies were abolished by the Federal Government in May 2023 and insisted that all players must bear the cost of transporting products to their depots.