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The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has softened its earlier opposition to the Dangote Refinery, as the group expressed a desire to work together with the refinery on Tuesday.
It will be recalled that DAPPMAN and the management of Dangote Refinery had previously been in conflict over various issues related to the refinery’s operations, particularly concerning pricing and product distribution.
However, while appearing on the 'Sunrise Daily' programme aired on Channels Television on Tuesday, the association’s spokesman, Nkem Ohia, made reference to the Dangote Refinery and stated: “You have wholesale, which we are angling for.”
He added, “That is for us to be able to pick products in bulk with vessels with a minimum capacity of 30,000 metric tons or more and sales at ex-gantry, which is like retailing.”
Ohia explained further, “Ideally, most refineries lay more emphasis on ensuring that the bulk evacuates, whatever it is, through off-takers who can lift massive quantities to be able to make sure the refinery is in a position to quickly go into production, replenish stocks as it brings in crude, and refines.”
He noted that the purpose is to “make sure it evacuates within a reasonable period of time, not keep stock.” While acknowledging that this may not be Dangote’s current model, he said, “That is not his own business model, but I’m not too sure that’s the best for him. But I can’t dictate.”
The DAPPMAN representative rejected claims of being “in conflict” with Dangote Refinery, clarifying that the association’s interest lies in working collaboratively with the facility.
He stated, “Even before he commenced production, we reached out to him to allow us to collaborate with him and be able to take products in bulk. It has been one of back and forth. Understanding has not been firmly reached.”
According to Ohia, Dangote prefers working with a limited number of chosen partners, saying, “Instead, he prefers to work with a few select partners, which has excluded DAPPMAN. It has one or two members of DAPPMAN.”
He stressed that the association is advocating for an open-door policy, which “we believe would benefit the country.”
Ohia also expressed concerns over what he described as selective practices that seemed to restrict access to petroleum product distribution.
He further rejected suggestions that DAPPMAN members had requested an annual subsidy of N1.5 trillion from Dangote Refinery to help them match the refinery’s gantry pricing at their own depots.
Challenging the basis for the subsidy claim, Ohia remarked: “We don’t know where he arrived at that, because the key thing here is he alleges, and it’s for him to establish and prove. Far from it, we are not asking for a N1.5 trillion subsidy.”
He continued, “This is completely ridiculous. We’re not asking for anything like a subsidy. We went into negotiations and are still in negotiations with him to see whether he can bridge that gap.”
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