The Depot and Petroleum Products Marketers Association of Nigeria(DAPPMAN) has warned that unchecked claims and practices by Dangote Refinery are squeezing local businesses and could worsen fuel costs for ordinary Nigerians already battling a fragile post-deregulation economy

The Association’s Executive Secretary, Olufemi Adewole, who, in a statement on Saturday, described these moves as “unpatriotic,” explained that the price cuts by the Refinery ignored their timing and market impact.

The warning followed the latest reduction in gantry price by the Refinery to N820 per litre.

According to Dangote Refinery, Lagos and other South-Western states will see fuel retailing at N841 per litre, while Abuja, Rivers, Delta, Edo, and Kwara states will sell at N851 per litre.

“These reductions were often strategically timed when other importers had active cargoes at sea or in tank, creating price shocks that undermined competition and imposed financial strain on fellow market participants, including the refinery’s own domestic customers.

“Even more concerning is the refinery’s pattern of offering lower prices to international buyers while quoting higher rates to local off-takers. This contradicts public-facing claims of prioritising Nigerians and places unnecessary burden on domestic businesses already operating under tight margins,” the statement read in part.

The Association said it has watched with “dismay’ the unfolding tensions between the Dangote Petroleum Refinery and the National Union of Petroleum and Natural Gas Workers (NUPENG).

“While the matter may not directly concern our Association, we are alarmed by the tone, trajectory, and escalation of this issue. Beyond the reputational risks to various market participants, we are deeply concerned about the potential impact this may have on ordinary Nigerians, particularly in a downstream environment still stabilising post-deregulation.

“As responsible and long-standing stakeholders in Nigeria’s downstream sector, we feel compelled to provide clarity on several inaccurate or misleading claims made in the public space – claims which, if left unchecked, could mislead the public and diminish the collective contributions of other players that have ensured national fuel availability for decades.”

It also clarified the widespread belief that Nigeria’s downstream stability rests solely on one refinery.

“The assertion that Nigeria’s downstream stability rests solely on one refinery is misleading and dismissive of the broader ecosystem. While we welcome the Dangote Refinery as a major infrastructure project, its contribution has peaked at only 30 to 35 per cent of national demand. “The balance continues to be supplied by responsible petroleum product marketers, including DAPPMAN members, who import and distribute under strict regulatory oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

“For decades, DAPPMAN marketers have ensured uninterrupted fuel access across the country, investing in depots, trucking fleets, retail networks, and logistics and doing so even through periods of forex pressure, subsidy transitions, insecurity, and economic downturns. These contributions deserve recognition, not erasure.

According to the statement, the Association kicked against an allegation that its members sell substandard products to consumers, adding that the Refinery does not offer free delivery to buyers.

“We reject any insinuation that DAPPMAN members deal in “substandard” petroleum products. All imports are subject to independent, regulator-accredited laboratory testing in accordance with NMDPRA protocols and global quality standards.

“Ironically, the same refinery alleging superiority has on multiple occasions sought waivers to distribute products with sulphur levels above approved thresholds, a fact that calls into question its consistency and credibility on product quality. Nigeria’s downstream petroleum market is highly regulated, transparent, and aligned with international best practices. Attempts to cast doubt on the integrity of other compliant players are unfair and inaccurate.

“The claim that the refinery offers “free delivery” is also misleading. In reality, marketers are required to lift at least 25 percent of their allocations directly from the refinery gantry and must do so using only Dangote-owned trucks, paying commercial rates based on their destination. “This arrangement imposes additional logistical and financial burdens on marketers, limits operational flexibility, and undermines the narrative of cost relief being provided to the local market.”

NUPENG

While it agreed that the Refinery is a “valuable” contributor to the economy, it, however, noted that it is not the downstream saviour.

“Dangote Refinery is a valuable contributor, but it is not a messiah. Nigeria’s downstream sector is not driven by one facility alone.

“It is powered by an ecosystem of refiners, depots, marketers, transporters, and regulators, working in tandem to ensure nationwide access to fuel under often difficult circumstances. We caution against narratives that monopolise credit, shift blame, or undermine the confidence of investors, partners, and the public.”

The Association reaffirms its commitment to the principles of competition, transparency, and collaboration in Nigeria’s downstream petroleum industry.

“We call on all parties, including the Dangote Refinery, to engage constructively and communicate responsibly, avoiding one-sided accounts that can destabilise market confidence. The future of Nigeria’s energy sector lies not in divisive narratives, but in cooperation, regulatory compliance, and mutual respect.” (Channels TV)

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