December 12, 2024
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OIL & GAS

Marketers Refute Claims of Importing Dirty Fuel by Dangote Refinery

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has firmly denied allegations that its members import dirty fuel into the country.

This clarification comes in response to claims by the Dangote Refinery, which suggested that licenses were being indiscriminately granted to marketers for importing substandard fuel, potentially undermining the refinery’s operations.

In a statement, DAPPMAN asserted “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 Nigerian Midstream and Downstream Regulatory Authority (NMDPRA).”

The statement, according to Daily Trust, read: “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take place offshore Lomé, a move which was vehemently protested and resisted by downstream operators and has been rescinded.

“DAPPMAN recalls that between February and May 2024, the NMDPRA had allowed AGO imports with maximum Sulphur content of 200/ppm however 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 PMS and AGO imports, from 31st December 2024 to 1st June 2024, thereby limiting all marketers and depots’ AGO source to Dangote Refinery even though the latter was yet to install its desulphurization equipment as the Sulphur in its blends of AGO presently exceed 50/ppm.

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

The statement also criticized the Dangote Refinery for selling fuel at cheaper prices to international buyers compared to domestic buyers, questioning the refinery’s patriotism.

DAPPMAN emphasized that while the success of the Dangote Refinery would be a source of national pride, all downstream operators must comply with the Petroleum Industry Act 2021, which opposes any form of monopoly.

DAPPMAN reiterated its commitment to working with all stakeholders, including the Dangote Refinery, to ensure the provision of safe and healthy fuels to Nigerians, fostering a competitive and affordable fueling market.

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