DAPPMAN Counters Dangote Refinery over Claim of Dirty Fuels Import

•Says refining company’s assertions inaccurate

Peter Uzoho

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) yesterday responded to the management of Dangote Refinery, debunking the company’s claim that marketers were importing dirty fuel into Nigeria with the support of the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).

In a statement issued last night, DAPPMAN said the information from Dangote Refinery’s management was laced with inaccuracies.

DAPPMAN stated that no member of the association and private fuels depot has imported any fuel with specification that is outside the regulation into the country, apart from what is currently approved by the NMDPRA.

“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 NMDPRA has been granting licences indiscriminately to marketers to import what they described as ‘dirty refined products’ into the country.

“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 NMDPRA and would wish to state that the information from the Dangote Refinery management is laced with inaccuracies,” the group stated.

DAPPMAN noted that the downstream regulator which is the NMDPRA had in the very recent past initially objected to offtakes by their daughter vessels from import mother vessels, via ship-to-ship operations, which they explained usually take place offshore Lome.

The association said the move was however vehemently protested and resisted by downstream operators and has been rescinded.

DAPPMAN recalled that between February and May 2024, the NMDPRA had allowed diesel  imports with maximum sulphur content of 200/ppm.

It noted however, that this was followed by another move by the regulator to fast-forward the country’s target date of the implementation of the 50/ppm sulphur limitation on petrol and diesel imports from  December 31, 2023 to  June 1, 2024.

By that action, DAPPMAN said the regulator limited all marketers and depots’ diesel source to Dangote Refinery even though the latter was yet to install its desulphurisation equipment as the sulphur in its blends of diesel presently exceed 50/ppm.

“This again was resisted by DAPPMAN in its letter to the NMDPRA which was dated  June 10, 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 diesel 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 licences indiscriminately to marketers to import ‘dirty refined products’ into the country”, DAPPMAN argued.

According to the marketers, Dangote Refinery’s current blend of diesel 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.

While admitting that Dangote Refinery as a business entity was free to adopt any model that suits its management, DAPPMAN however posited that the refinery’s current practice of cheaper bulk sales prices to international buyers at the detriment of Nigerian buyers called to question their patriotism to the country.

The association further claimed that several Nigerian marketers had in recent past been offered Dangote Refinery cargoes by international trading firms at rates that were very much lower than what they were directly offered by the refinery, stating that this will not be in the interest of the Nigerian fuel end-user.

It added: “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 (PIA) 2021 which abhors monopoly of any sort.

“DAPPMAN 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 fuelling options for their daily activities.”