The Depots and Petroleum Products Marketers Association of Nigeria has firmly rejected claims made by Dangote Refinery that oil importers selling petrol at lower prices than the refinery are importing substandard products and colluding with international traders to flood Nigeria with low-quality fuel.

This follows the refinery’s allegations on Sunday, suggesting that these importers were undermining fuel quality standards in the country.

However, in a statement issued on Monday, DAPPMAN’s Executive Secretary, Olufemi Adewole, strongly refuted the claims, stating that none of its members were involved in practices that could compromise the quality of fuel supplied to Nigerian consumers.

Adewole emphasized that DAPPMAN members are committed to maintaining high standards and ensuring that only quality products are distributed across the country.

He further argued that the pricing of petroleum products in the international market is influenced by dynamic market forces, and that the cost of imported products is calculated based on these fluctuations, with all relevant templates publicly available.

“We’ve said this for the umpteenth time, and it bears repeating, those in the downstream sector business of petroleum products trade are patriotic Nigerians who will not shortchange Nigerian citizens for filthy lucre. Our members are in this business to add value to the businesses of their fellow Nigerians and not to defraud them.

“Prices of products in the international market are dynamic as they’re dictated by prevailing circumstances at every given situation. We calculate our landing costs based on the dynamics of market forces, and the templates are always in the public domain. To claim that if the landing cost of imported product happens to be lower than that of the refinery indicates importation of low quality product is not only preposterous, but also fallacious. In any case, the management of the refinery has, until now, kept its cost and prices close to its chest and put it away from public scrutiny.

“This type of submission, targeted at projecting our members negatively before the public, cannot help the management’s desire to have oil marketers patronise its products. What will ensure such patronage is transparency, fair play, and readiness to compete with others, including foreign refineries, on an even keel and on a level playing field,” Adewole said.

He also criticized Dangote Refinery’s approach, suggesting that instead of targeting oil marketers with negative claims, the refinery should focus on transparency, fair play, and competition in the market. Adewole called for a level playing field, stressing that these practices would be more effective in attracting marketers to purchase from the refinery.

In addition, Adewole expressed surprise at Dangote Refinery’s recent announcement of a 500 million-litre fuel reserve, noting that DAPPMAN members had been unaware of such a large stockpile.

He questioned why marketers were not informed of the reserve, particularly since the refinery had been rationing fuel supplies to marketers at the time.

“We were surprised because we believe that if the refinery has such huge stock, it’s the marketers that should be put in the know first.

“Secondly, it was even more surprising given that the news came about the time the refinery was working on rationing what each marketer could pick from the refinery. If they had such huge stock, how is it then that they’re rationing what marketers could buy?

“On all these developments in the industry, the position of our members is very clear: we’ve always played by the rules, and we’ll continue to play by the rules. We’ll not be tired of advocating for a level playing field and a highly competitive and transparent sector that’s devoid of arm twisting and devoid of any form of dominant tendencies,” he said.

DAPPMAN reiterated its commitment to adhering to industry rules and advocating for a transparent, competitive sector free from monopolistic practices.

Meanwhile, the Petroleum Products Retail Outlets Owners Association of Nigeria also weighed in, revealing plans to import high-quality Premium Motor Spirit (PMS) and sell it at significantly lower prices than current market rates.

PETROAN stated that it was awaiting approval for an import license from the Nigerian Midstream and Downstream Petroleum Regulatory Authority and had established a strategic business unit, named PETROL, to handle the importation of these premium products.

The spokesman of PETROAN, Joseph Obele, confirmed that the association had reached agreements with foreign refinery partners and financial collaborators to secure top-quality PMS.

He reiterated that PETROAN would offer the imported fuel at prices lower than those set by domestic refineries.

Obele also responded to Dangote Refinery’s claims regarding potential inferior imports and a proposed PMS blending plant in Lagos, calling these allegations part of a strategy by Dangote Refinery to drive competitors out of the market.

He emphasized that PETROAN’s efforts were centered on providing more affordable and high-quality fuel options for Nigerian consumers.

He said the allegations that PETROAN would import inferior products and that an international company was trying to establish a PMS blending plant in Lagos “are all strategies for Dangote Refinery to push others out of the market…”