The Dangote Refinery has been urged by the Depot and Petroleum Products Marketers Association of Nigeria to provide its gasoline supply to marketers more easily and to offer goods at reasonable prices. Ikem Ohia, the association's representative, stated on Channels Television's The Morning Brief on Wednesday that tighter cooperation with the refinery will guarantee a consistent supply and eliminate gasoline lines nationwide.
He denied reports of a disagreement with the refinery, stating that marketers are simply interested in a clear agreement that ensures consistent delivery.
"Our main goal is to have petroleum products continuously available at fair prices so that there is never a stock-out and Nigerians are not forced to wait in line for fuel," Ohia said.
Ohia acknowledged the refinery as the leading supplier but clarified that access and pricing are still the main issues, asking, "The question is: at what price does he offer us, and do we actually have access to purchase these products from him?"
He noted that DAPPMAN members have built a robust distribution network with depots in Lagos, Warri, Port Harcourt, and Calabar for over 20 years, and he urged Dangote to utilize these facilities.
"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 said in response to allegations that marketers were vying for subsidies.
We're not requesting financial aid. To find out how he can close the deficit, we entered into and are still in talks.
He claims that worldwide practice demonstrates that refineries often rely on both retail sales and bulk supplies to off-takers.
Refineries should ideally prioritize bulk evacuation using off-takers who can carry large amounts and enable continuous output. "National demand cannot be met by relying solely on retail gantry sales," he said.
He went on to say that, despite DAPPMAN's contact with Dangote to solicit bulk supplies before manufacturing began, no definitive agreement was reached.
Rather, he would rather collaborate with a restricted group of people, including one or two of our members. We think the country will benefit from an open system rather than a regulated one," he stated.
Regarding distribution, Ohia pointed out that many of the association's members also run filling stations, some of which have up to 300 locations, but that they are unable to meet demand due to limited 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 discussion follows Dangote's investment in 4,000 CNG-powered trucks for nationwide distribution, which marketers claim could give the refinery too much control over the downstream sector.
In response, billionaire Femi Otedola urged DAPPMAN to adjust to market changes, suggesting that instead of opposing Dangote's model, they should restructure and think about acquiring the Port Harcourt Refinery.
Billy Gilly-Harris, the president of the Petroleum Products Retail Outlets Owners Association of Nigeria, also voiced his opinion, stating that the 4,000 trucks were insufficient to guarantee a consistent supply throughout the nation.
Nonetheless, the refinery has insisted that it will not pay the logistics costs that marketers wish to shift to it.
Dangote Petroleum Refinery recently called DAPPMAN's assertion of approximately ₦1.5 trillion in subsidies "false and unfounded," stating that the gantry sells goods only based on production costs and controlled margins.
It stated that marketers, like other stakeholders in the business, must fund the cost of shipping items to their depots, noting that subsidy on petroleum products had been discontinued by the Federal Government starting May 2023.