Financial Energy Review
…calls to question the patriotism of Dangote Refinery
…put off stiff resistance to Dangote Refinery’s monopoly…..
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has picked on Dangote Refinery over what the association described as the company’s penchant for inaccurate information about the realities in the downstream sector of the petroleum industry.
The association in a statement issued and signed by its management on Monday, bemoaned the attempt by the company to blackmail the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA), that is it has been granting licenses indiscriminately to marketers to import what the management of Dangote Refinery described as ‘dirty refined products’ into the country!
DAPPMAN stated: “Over this last weekend, the news broke on the lamentations of the Management of Dangote Industries Limited wherein they were quoted as having stated that the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) has been granting licenses indiscriminately to marketers to import what they described as ‘dirty refined products’ into the country!”
“The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN)), wishes to state emphatically that no member of the association and indeed, no private fuels depot has imported into the country any fuel with specification that is outside of the regulation other than what is currently approved by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) and would wish to state that the information from the Dangote Refinery Management is laced with inaccuracies.”
DAPPMAN noted that the downstream regulatory authority, (NMDPRA), in the very recent past had initially objected to offtakes by our daughter vessels from import mother vessels, via Ship-to-ship operations which usually take place offshore Lome, a move which was vehemently protested and resisted by downstream operators and has been rescinded.
“DAPPMAN recalls that between February and May 2024, the NMDPRA had allowed AGO imports with maximum sulphur content of 200/ppm however this was followed by another move, by the regulator, to fast forward the country target date of the implementation of the 50/ppm sulphur limitation on PMS and AGO imports, from 31st December 2024 to 1st June 2024, thereby limiting all marketers and depots’ AGO source to Dangote Refinery even though the latter was yet to install its desulphurization equipment as the sulphur in its blends of AGO presently exceed 50/ppm.”
This again was resisted by DAPPMAN in its letter to the NMDPRA which was dated 10th June 2024 to warn and alert the regulator not to ‘inadvertently promote and introduce a monopoly into the sector.”
“With stiff resistance at every attempt at introducing a Dangote Refinery monopoly into the downstream, and the fact that the latter, despite its most recent production of AGO with sulphur contents reported at 1200/ppm, it is baffling to us that the Management of Dangote Industries (including the Dangote Refinery), who are very much aware of these facts, could claim that the NMDPRA has been granting licenses indiscriminately to marketers to import ‘dirty refined products’ into the country. Their current blend of AGO, with reported sulphur contents of 1200/ppm is technically classified as ‘dirty fuel’ and grossly in excess of the 200/ppm imported by any marketer or depot owner. “
The association stated that Dangote Refinery as a business entity is free to adopt any model that suits its management however its current practice of cheaper bulk sales prices to international buyers at the detriment of Nigerian buyers calls to question their patriotism to the country. Several Nigerian marketers had recently been offered Dangote Refinery cargoes by international trading firms at rates much lower than what Dangote Refinery directly offered them, and this will not be in the interest of the Nigerian fuel end-user.
There is no doubt that the success of Dangote Refinery will be a thing of pride to the nation, but all downstream operators and their activities must be in tandem with the provisions of the Petroleum Industry Act 2021 which abhors ‘monopoly’ of any sort.
DAPPMAN however, stated that it will continue to work with all stakeholders, including Dangote Refinery willingly to provide safe, healthy fuels to all Nigerians competitively giving them great and affordable fueling options for their daily activities.
