The Dangote Petroleum Refinery has refuted claims made by oil merchants that it cannot meet local fuel demands.
The refinery claimed to have enough fuel to meet demand both domestically and internationally.
Olufemi Adewole, the Executive Secretary of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), reportedly responded to remarks made by the refinery’s founder, Aliko Dangote, regarding the $20 billion facility being undermined by certain powerful marketers by saying that marketers are mainly concerned with maintaining their operations through fuel imports.
Despite rejecting Dangote’s idea of a “cabal” within the business, Adewole recognized the concerns of private depot owners who have made significant investments over the years to guarantee a consistent supply of petroleum for Nigerians.
According to the DAPPMAN representative, private depot owners still bear the majority of the fuel distribution duties across the country, and the Dangote refinery has failed to meet even the current reduced local consumption levels despite its substantial capacity of 650,000 barrels.
The chief executive of the authority (NMDPRA) claimed in a recent presentation at the Villa that the Dangote refinery is not able to meet even the lower amount of local demand. Thus, the Dangote refinery is unable to meet at this time. Nigerians’ demands have been met and the gap has been closed by us, the private depot owners,” the DAPPMAN scribe said.
It is untrue to say that the Dangote Refinery is not fulfilling demands.
A senior official from the Dangote refinery informed reporters that the refinery still exports fuel abroad after meeting local market demands, but he asked to remain anonymous because of constraints on discussing the matter.
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Inquiring as to how marketers concluded that the refinery could not meet domestic demand, he pointed out that it ships millions of liters every day.
The real consumption figures will eventually be made public, he claimed, adding that Nigeria’s local consumption statistics have been skewed over the years for different purposes, especially during the gasoline subsidy time.
According to many stories I’ve seen, the marketers claimed that our refinery was unable to satisfy local demand. That’s not accurate.
“We export and produce more than enough fuel for the local market,” the official said.
Another refinery official told reporters that President Bola Tinubu’s decision to ban the importation of commodities that may be made domestically is the only way to boost the economy. However, he cautioned that importers will try to thwart the “Nigeria First Policy.”
The President’s decision to prohibit imports is the only option to boost the economy, but importers would stop at nothing to make the initiative fail. “Why are we bringing in what we already have locally?” the source inquired.
As the refinery lowered prices, it was understood that the DAPPMAN boss had accused Dangote on Friday of attempting to monopolize the downstream industry.
Price cuts following cargoes leaving the gantry have left many marketers silently taking losses in order to survive, he revealed.
“We didn’t come out to create a stir. However, we’ve been taking the brunt of it in order to continue being profitable and sustainable,” Adewole said.
The Dangote spokesperson responded by saying that certain importers only care about maximizing profits and ignore the welfare of the regular people.
While the Federal Government continued to subsidize imported petroleum products, he pointed out that many of these importers engaged in round-tripping.
“The average man doesn’t matter to these individuals. They want to keep their money. “A lot of them round-tripped when fuel subsidies were in place,” the insider said.
Inquiring about the current fuel use amount each day, he stated that the true figure needs to be revealed.
“Ask them to estimate the amount of consumption in our country. Let them tell us the actual number. They want the general public to be unaware of that. But eventually, everyone will know that. Though nothing endures forever, those who hold secrets are aware of themselves. We export consistently and manufacture daily. What are they discussing, then?” he asked.
How Were the Stocks of Dangote Refinery Known to Them?
Before assessing the refinery’s capacity to meet local demand, a consultant for the 650,000 barrel-per-day facility urged DAPPMAN, the Independent Petroleum Marketers Association of Nigeria, and the Petroleum Products Retail Outlet Owners Association of Nigeria to disclose the quantity of fuel the refinery currently holds in stock.
“DAPPMAN and the other marketers should be questioned about how they learned of Dangote’s stock holdings. The consultant addressed the media, “How did they come to the conclusion that the refinery can’t satisfy local needs?”
