The Dangote Group has dismissed accusations from the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) that its refinery sells petrol to foreign traders at prices lower than those offered to Nigerian marketers.
Recall, Dawn Herald yesterday reported that Olufemi Adewole, Executive Secretary of DAPPMAN, alleged that members of the association purchased petrol from international traders in Lomé, Togo, at rates N65 cheaper than what the refinery sells within Nigeria. He claimed local marketers found it more expensive to buy directly from the refinery, sometimes making imports a more viable option.
In response, the Dangote Group described the allegations as misleading and inaccurate, stating the price disparity between Nigeria and Togo, where pump prices are more than double. The company pointed out that the average petrol price in Lomé is approximately 680 CFA francs per litre, equivalent to about N1,826, higher than the price per litre in Nigeria.
The refinery stressed its role in placing Nigeria at the forefront of affordable petrol in West Africa, despite sourcing over 60 percent of its crude oil from imports. It further accused some marketers of taking part in round-tripping, buying petrol domestically, shipping it overseas, then re-importing it to Nigeria at inflated costs.
The statement questioned the logic behind such practices, considering the extra billions of naira spent transporting products back from Lomé to Lagos. It urged marketers genuinely focused on Nigerian consumers to partner directly with the Dangote refinery, which offers benefits such as volume discounts, credit facilities, and logistical support to partners aimed at ensuring fuel affordability and availability.
The group also accused some operators of prioritizing profit through arbitrage by diverting products to more lucrative neighboring markets rather than serving Nigerian consumers. According to Dangote, this has led to inflated prices and supply challenges within the country.
While DAPPMAN contends that Nigerian marketers face pricing disadvantages, Dangote insists its operations have made Nigeria the most affordable fuel hub in West Africa.
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