.Dangote Refinery says imports over 60% crude feedstock
THE Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has accused Dangote Petroleum Refinery of reducing petrol prices after its members have bought the product from the company.
DAPPMAN claimed that several of its members have suffered losses from the petrol price reductions, which occur post-sales, noting that the move is making its members uncompetitive in the market.
Speaking on Monday’s Morning Show on Arise TV, DAPPMAN spokesman, Mr Ikem Ohia, said members are asking Dangote Petroleum Refinery to provide a level-playing ground for all players, noting that the 650,000 barrels per day (bpd) refinery favours foreigners with lower prices.
READ ALSO: Nigeria faces petrol scarcity as Dangote, NUPENG clash escalates
“We have evidence that international buyers get at (N65) differential. We are in support of Dangote Refinery, but what we want is a level-playing field,” he said.
“We came in when Nigerians needed us most. Most of the private depots came in 1999, and they came as a stop-gap. We came in when Nigerians were asking for private depots owned by Nigerians due to petrol scarcity.”
In early 2022, substandard petrol was imported into Nigeria, resulting in vehicles’ engine damage across Nigeria. The NNPC then provided the names of the companies that were responsible for importing the adulterated petrol into the country, including MRS, Oando, Duke Oil and Emadeb/Hyde/AY Maikifi/Brittania-U Consortium.
On Monday, Dangote Petroleum Refinery reminded DAPPMAN that one of its members was responsible for the import of substandard fuel into Nigeria in 2022. But Mr Ohia said it is ridiculous to accuse DAPPMAN members of bringing in substandard products.
“The industry is regulated. Before you bring in petroleum products into Nigeria, your bill of lading must be accompanied by a certificate of origin. Tests are carried out on high sea before being shipped to the Nigerian vessels to be discharged into Nigeria,” he noted.
Source: Dangote Group
However, Dangote Refinery, in advertorial in several Nigerian newspapers on Monday, said: “DAPPMAN’s claims regarding the quality of its imported petroluem products are contradicted by established facts.”
The refinery further said,” In 2022, the Nigerian National Petroleum Company (NNPC) reported that one of DAPPMAN’s members had supplied petrol containing over 15% methanol, well above the acceptable limits(methanol is not the standard in refinery practice, but some blenders use to artificially raise octane levels beyond the anti-knock threshold, a questionable and unsafe approach). The result was widespread engine damageror thousands of end users. Yetm no transparent government inquiry or independent investigation was conducted to determine the source, intent, or full impact of the adulterated fuel.”
READ ALSO: Dangote Refinery has no operating license, company only 45% completed – Nigerian Regulator
Dangote Petroleum Refinery said it is easier for DAPPMAN and its affiliates to make such quality claims “knowing that the regulatory authority lacks a single, verifiable government-owned laboratory in Nigeria capable of testing fuel to international standards,” stating that regulatory gap continues to undermine the enforcement of Section 317 (11) of the Petroleum Industry Act, which mandates sulphur content limit of 50 parts per million for all petrol consumed in line with ECOWAS standards.
“It must be stated that after that incident, we intervened and made sure the petrol was blended to spec. We made sure we reduced the effect of that particular cargo. If they are sure it was DAPPMAN member who brought in the petrol, they should tell us who the person is,” DAPPMAN spokesman said.
Fight with unions
Dangote has been at war with various groups in the petroleum industry. It had a recent rift with the National Union of Petroleum and Gas Workers (NUPENG), who accused the refinery of forcing drivers to sign agreements that would prevent them from joining existing unions in the oil and gas industry, Economy Post earlier reported.
“Slavery ended centuries ago, but some unscrupulous capitalists are making efforts to bring it back. Any worker who cannot exercise the right of association is no better than a slave. Ordinary Nigerians should neither encourage nor support slavish working conditions,” the union said. The rift has since been settled.
Dangote Refinery also said in its advertorial that over 60 percent of its crude oil is imported, which imples that the naira-for-crude policy by the Nigerian government is failing.
