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The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) claimed that the Dangote Group’s refinery sold gasoline to foreign traders for less money than it did to Nigerian marketers. The group denied these claims.
In an interview with Punch, DAPPMAN’s Executive Secretary, Olufemi Adewole, claimed that organization members could purchase Dangote gasoline from foreign dealers in Lomé, Togo, for ₦65 less than what the refinery sells locally.
The price that Dangote charges foreign traders is ₦65 less than what he charges us. In certain cases, we were able to purchase from them and still deliver it to Nigeria, Adewole asserted.
The Dangote Group reacted on Monday, calling the charges “misleading and inaccurate” in a statement.
The business questioned why the price of gasoline is approximately twice as high in Togo as it is in Nigeria, where it is ₦865 per liter.
“The assertion that gasoline costs less in Togo than in Nigeria is untrue. The average pump price in Lomé is roughly 680 CFA francs per litre, or ₦1,826. This can be verified easily,” the statement said.
Although the company imports over 60% of the crude oil it processes, it emphasized that its refinery has established Nigeria as the main supplier of reasonably priced gasoline feedstock for West Africa.
Additionally, Dangote charged that certain marketers were round-tripping, purchasing gasoline in Nigeria, reimporting it at exorbitant prices, and passing it via Togo.
The fact that DAPPMAN and some of its members are excessively preoccupied with importing refined goods—even acknowledging round-tripping—is becoming more and more obvious. With the significant added expense of shipping petroleum products from Lomé to Lagos, the corporation questioned, “What is the business rationale behind this practice?”
The refinery pointed out that local partners already benefit from volume-based discounts, credit facilities, and logistics help, and that marketers who are dedicated to Nigeria’s home market should collaborate directly with it.
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If their real goal is to cater to the Nigerian home market, why not become one of the Dangote refinery’s expanding local partners? The statement further stated that these partners receive high-quality products and incentives aimed at improving local availability at a suggested fee that has been agreed upon by all parties.
Dangote also said that price variations can occur based on whether traders take goods straight from the gantry or using the Single Point Mooring (SPM) facility. Serving local customers has never really been the focus of the Nigerian petroleum industry, according to certain operators, the warning stated.
“The truth is that for certain operators, the primary focus of their company has never been providing petroleum products to Nigerian customers. Instead, it centers on arbitrage opportunities, which allow them to quickly triple the value of items by rerouting them to more profitable sub-regional markets, the statement stated.
