DAPPMAN Urges Full Access to Dangote Refinery as NNPCL Refineries Struggle to Produce Petrol

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has stated that its members are currently unable to source petrol (Premium Motor Spirit) from Nigerian National Petroleum Company Limited (NNPCL) refineries due to insufficient output. Instead, the marketers are relying on the Dangote Petroleum Refinery, which is currently the only facility in the country producing viable quantities of petrol. DAPPMAN’s Executive Secretary, Olufemi Adewole, emphasized that the association is eager to work with Dangote but may resort to imports if domestic supply remains limited.

DAPPMAN clarified that the NNPCL’s revamped Port Harcourt and Warri refineries are mainly producing naphtha, not petrol in usable volumes. Adewole stressed that marketers would rather buy from local refineries but are constrained by limited availability and inconsistent access. He noted that while talks with Dangote Refinery are ongoing, the company’s selective approach and gantry supply model do not align with DAPPMAN’s bulk procurement needs, which typically involve purchasing 15–25 metric tonnes.

The association expressed concern over Dangote Refinery’s unwillingness to allow bulk loading through vessels, which would simplify logistics for depot owners with facilities across Nigeria’s coastal regions. DAPPMAN argued that if the refinery’s portal is opened for vessel loading and fair pricing is ensured, the marketers would be more inclined to source locally rather than import fuel. The association maintained that the Petroleum Industry Act permits imports when local supply is insufficient or inaccessible.

Meanwhile, the NNPCL has defended its performance, asserting that the Port Harcourt refinery has been operating at 70% of its installed capacity since November 2024, producing diesel, fuel oil, kerosene, and naphtha, which is blended into PMS. However, conflicting reports indicate the refinery has been running below 40% capacity, and the Warri refinery has been shut since January 2025 due to safety issues. This discrepancy, along with the recent firing of the managing directors of the country’s major refineries, has raised further questions about domestic refining reliability.

Adewole concluded that while DAPPMAN supports local refining initiatives and sees Dangote Refinery as a national asset, business sustainability must guide their choices. If local options are unavailable or financially unviable, importation will be pursued to ensure Nigerians get fuel at the best prices. The group stressed the need for improved access, transparency, and efficiency in the local supply chain to strengthen domestic energy security and reduce dependence on imports.

Source: Punch