‘Our Output Is Sufficient’ – Dangote Refinery Counters Marketers’ Accusations

Claims made by oil marketers that the Dangote Petroleum Refinery cannot meet local fuel requirements have been refuted.
The refinery insisted that it has enough fuel to meet demand at home and export to other countries.

In response to remarks made by the refinery’s founder, Aliko Dangote, regarding the $20 billion facility being undermined by certain powerful marketers, Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), reportedly said that marketers are mainly concerned with maintaining their operations through fuel imports.

While he acknowledged the vested interests of private depot owners who have made significant investments over the years to guarantee a consistent gasoline supply for Nigerians, Adewole dismissed Dangote’s idea of a “cabal” within the business.

The DAPPMAN official stated that even with its substantial 650,000 barrel capacity, the Dangote refinery has been unable to supply even the current lower levels of local consumption, and that private depot owners still bear the bulk of the fuel distribution duties across the country.

In a recent presentation at the Villa, the chief executive of the authority (NMDPRA) quoted the Dangote refinery as saying that it is not able to meet even the lower level of local consumption. Thus, the Dangote refinery is currently unable to meet. The DAPPMAN scribe declared, “We, the owners of private depots, have been filling the void and attending to the needs of Nigerians.

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It is untrue to say that the Dangote Refinery is not fulfilling demand.
After meeting the demands of the local market, the refinery continues to ship fuel abroad, a senior official from the Dangote refinery informed media, requesting anonymity because of constraints on addressing the matter.

He questioned how marketers concluded that the refinery could not meet local demand, given that it ships millions of liters every day.

He maintained that local consumption data in Nigeria has been skewed throughout time for a variety of reasons, especially during the fuel subsidy era, and that the public will eventually be informed of the true consumption levels.

According to several accounts I’ve seen, the marketers claimed that our refinery was unable to satisfy local demand. The statement is untrue.

The official said, “We export and produce more than enough fuel for the local market.”

Another refinery official warned reporters that importers will try to thwart the “Nigeria First Policy,” maintaining that President Bola Tinubu’s decision to ban the importation of commodities that may be produced domestically is the only way to boost the economy.

“The President’s decision to prohibit imports is the only option to boost the economy, but importers will stop at nothing to make the strategy fail. The source questioned, “Why are we importing what we have locally?”

The DAPPMAN chairman reportedly accused Dangote on Friday of attempting to monopolize the downstream industry, particularly when the refinery implemented price reductions.

He disclosed that price slashes after cargoes left the gantry have left many marketers absorbing losses quietly, just to stay afloat.

“We weren’t here to create a stir. However, in order to continue being profitable and sustainable, we have been taking the brunt of it,” Adewole said.

In response, the Dangote representative stated that certain importers disregard the welfare of the average citizen, focusing solely on profit maximisation.

He noted that many of these importers participated in round-tripping while the Federal Government was still subsidizing imported petroleum products.

“These people don’t care for the ordinary man. They are interested in their pockets. Many of them engaged in round-tripping during the fuel subsidy era,” the source stated.

He also queried the current daily fuel consumption figure, saying the real figure must be disclosed.

“Ask them to state how much we consume as a nation. Let them give us the real figure. That’s what they don’t want the masses to know. But the masses will know that one day. Those keeping the secrets know themselves, but nothing lasts forever. We produce every day, and we export steadily. So, what are they talking about?” he queried.

How Did They Get To Know Dangote Refinery’s Stock?
Before deciding whether the refinery can sufficiently meet local demand, a consultant for the facility, which processes 650,000 barrels per day, urged DAPPMAN, the Independent Petroleum Marketers Association of Nigeria, and the Petroleum Products Retail Outlet Owners Association of Nigeria to disclose the amount of fuel currently held in stock by the refinery.

“We need to ask DAPPMAN and the other marketers how they got to know the amount of stock that Dangote has. How did they arrive at the conclusion that the refinery can’t satisfy local needs?” the consultant asked while speaking with the media.