Dangote Refinery Loading Bay. Credit: Dangote RefineryMarketers allege price discrimination, claim refinery’s cuts timed to cripple competitors
Fuel marketers in Nigeria have accused the Dangote Refinery of selling petrol to international traders at cheaper rates than it offers to local distributors, sparking outrage and renewed debate over its pricing strategy and impact on the domestic downstream sector.
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and the Petroleum Products Retail Outlet Owners Association of Nigeria (PETROAN) confirmed that the refinery was selling petrol in Togo at a margin of at least N6per litre less than it charges in Nigeria. The revelation has intensified concerns that the facility, touted as a solution to Nigeria’s fuel import dependency, is instead undermining local competition.
The allegations come just as the refinery announced it would reduce the pump price of petrol from N865 per litre to N841 in Lagos and the South West, and N851 in Abuja, Edo, and Kwara, alongside the rollout of its direct fuel distribution scheme beginning Monday. DAPPMAN, however, insists the price cut is not a patriotic gesture but a strategic ploy to weaken competitors.
DAPPMAN’s Executive Secretary, Olufemi Adewole, revealed that members had, on multiple occasions, purchased fuel at lower prices in Lomé from international traders who sourced the product directly from Dangote. He lamented that attempts to secure allocations from the refinery were either rejected or offered at unprofitable conditions.
“Dangote is selling to international traders at N65 cheaper than what he is selling to us. In some instances, we were able to buy from those people and still bring it into Nigeria. They take the product to Lomé, claiming to purchase in large volumes, while we are sidelined,” Adewole said.
According to him, DAPPMAN had submitted collated requests for supply to the refinery twice without success. He added that even when offers were made, the conditions imposed by Dangote Refinery were burdensome and made business unviable. He questioned the refinery’s commitment to local stakeholders, warning that importers would continue sourcing from international markets if prices remained unfavourable.
PETROAN’s National President, Billy Gillis-Harry, backed DAPPMAN’s position, describing the claim as accurate. “Exactly, DAPPMAN said the correct thing. It is true. We don’t want to be saying everything. But the way things are going, one day we will say everything,” he remarked.
Another major importer disclosed that his company had refused to buy from Dangote because the margins offered were unattractive compared to sourcing from abroad.
Responding to the accusations, a spokesman for the Dangote Refinery dismissed them with laughter, insisting the refinery had nothing to hide. He suggested that DAPPMAN might be behind the recent attacks against the company by the Nigerian Union of Petroleum and Natural Gas Workers (NUPENG), which has accused the refinery of anti-union practices.
The spokesman further noted that the refinery’s new free delivery scheme would commence on Monday and questioned why marketers were suddenly claiming to buy products from Lomé, instead of their traditional sources such as Russia and Malta.
Adewole, however, warned that portraying Dangote’s repeated price cuts as acts of benevolence ignored the broader implications. He argued that the reductions were often timed to coincide with the arrival of competing cargoes, destabilising the market and creating financial strain for other players, including domestic customers of the refinery.
He also expressed concern that the refinery’s decision to offer international buyers cheaper deals than local off-takers contradicted its public narrative of prioritising Nigerians.
On the refinery’s claims of offering “free delivery,” DAPPMAN argued the arrangement was misleading. Adewole explained that marketers were required to lift at least 25 per cent of their allocations directly from the refinery gantry using only Dangote-owned trucks and paying commercial rates based on distance, a system he said imposed extra costs and limited flexibility.
While acknowledging that the Dangote Refinery was a significant contributor to Nigeria’s fuel supply, Adewole insisted it was not the sole pillar of the downstream sector. “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 our members, under strict oversight by the Nigerian Midstream and Downstream Petroleum Regulatory Authority,” he said.
He cautioned against creating the impression that Nigeria’s downstream stability rested entirely on one facility, warning that such a narrative was dismissive of the broader ecosystem.
Despite the criticisms, the refinery has maintained that its direct distribution initiative and the introduction of compressed natural gas-powered trucks would significantly cut fuel costs and ease transportation challenges nationwide.
The face-off between Dangote Refinery and the marketers adds to the growing tension in Nigeria’s petroleum sector, with stakeholders warning that the fallout could affect fuel supply stability and the prices consumers eventually pay at the pump.
0 Comments