The Dangote Group says allegations by the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) that its refinery sells petrol to international traders at cheaper rates than those offered to Nigerian marketers is misleading and inaccurate.
The group stated this in a statement in responde to the allegations made by
DAPPMAN’s Executive Secretary, Olufemi Adewole.
Adewole had claimed that members of his group purchased Dangote’s petrol at prices N65 lower in Lomé, Togo, than what the refinery sells directly in Nigeria.
He was quoted as saying that “Dangote sells to international traders at N65 cheaper than what he is selling to us.
“In some instances, we were able to buy from those people and still bring it to Nigeria.”
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However, Dangote Group,
questioned DAPPMAN’s claims, saying “A straightforward check reveals that the average pump price in Lomé stands at approximately 680 CFA francs per litre, equivalent to N1,826.
“This figure reflects the very scenario that DAPPMAN and its affiliates appear to advocate for in Nigeria.”
The company insisted that its refinery had “positioned Nigeria as the primary source of affordable petrol feedstock for West Africa.”
The Dangote Group further accused some marketers of “engaging in round-tripping practices—buying petrol produced in Nigeria, routing it through Togo, and then re-importing it into Nigeria at inflated prices.”
The statement queried : “It is increasingly evident that DAPPMAN and some of its members are disproportionately focused on the importation of refined products, even admitting to round-tripping.
“What, then, is the business rationale behind this practice, especially when considering the substantial additional cost of transporting petroleum products from Lomé to Lagos, costs that run into billions of naira?”
The refinery argued that local partners enjoy benefits, and asked, “If their true intention is to serve the Nigerian domestic market, why not join the growing list of local partners of the Dangote refinery?”
The Dangote Group stated that “The reality is that for some operators, the business has never truly been about delivering petroleum products to Nigerian consumers.
“Instead, it revolves around arbitrage opportunities, where they can easily triple the value of products by diverting them to more lucrative markets in the sub-region.”
The “ongoing dispute highlights tensions” as DAPPMAN claims it is “disadvantaged in pricing,” while Dangote maintains its operations have “positioned Nigeria as the most affordable fuel hub in West Africa.”
(vitalnewsngr.com)
