Dangote’s dirty fuel import allegation inaccurate, say depot owners
The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has refuted the allegation by Dangote Industries Limited that the regulator granted licenses indiscriminately to marketers to import dirty refined products into the country.
DAPPMAN said no member of the association and 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 Nigerian Midstream and Downstream Regulatory Authority (NMDPRA).
“The information from the Dangote Refinery Management is laced with inaccuracies,” it said in a statement on Monday.
“DAPPMAN noted that the downstream regulatory authority, (NMDPRA), in the very recent past had initially objected to offtakes by our daughter vessels from import mother vessels, via Ship-to-ship operations which usually take place offshore Lome, a move which was vehemently protested and resisted by downstream operators and has been rescinded.”
The association recalled that between February and May 2024, the NMDPRA had allowed diesel imports with maximum sulphur content of 200/ppm.
It said this was followed by another move by the regulator to fast-forward the country target date of the implementation of the 50/ppm sulphur limitation on petrol and diesel imports from 31 December 2023 to 1 June 2024, thereby limiting 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 AGO presently exceed 50/ppm.”
It said: “This again was resisted by DAPPMAN in its letter to the NMDPRA which was dated 10 June 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 AGO 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.
“Their current blend of AGO, 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.”
The association said Dangote Refinery’s current practice of “cheaper bulk sales prices to international buyers at the detriment of Nigerian buyers calls to question their patriotism to the country”.
It said 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 Dangote Refinery, adding that this will not be in the interest of the Nigerian fuel end-user.
It said: “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 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 fueling options for their daily activities.”
