DISPUTE BETWEEN DANGOTE REFINERY AND THE DEPOT AND PETROLEUM PRODUCTS MARKETER'S ASSOCIATION OF NIGERIA (DAPPMAN).
The recent news highlights a dispute between the Dangote Refinery and the Depot and Petroleum Products Marketer's Association of Nigeria (DAPPMAN). The conflict centers on allegations by the Vice President of Dangote Industries Limited, Devakumar Edwin, that oil marketers reported Dangote Refinery to President Bola Tinubu, citing its low-priced diesel as harmful to their businesses.
Key points from the news:
1. Accusation Against DAPPMAN: Edwin claims DAPPMAN reported Dangote Refinery for selling diesel at reduced prices, impacting the marketers' ability to compete.
2. DAPPMAN's Response: The association denied the accusation and expressed concerns over a potential monopoly by Dangote in the supply of diesel and other petroleum products. They argue that such dominance restricts market competition and deprives Nigerians of alternative, potentially cheaper options.
3. Monopoly Concerns: DAPPMAN warned that allowing Dangote to dominate the supply of diesel could lead to price controls, similar to its influence in other sectors like cement and sugar. They highlighted that Dangote’s diesel product has higher sulphur content than required, yet local regulators restrict imports of better-quality diesel.
4. Call for Government Intervention: DAPPMAN asked the government to prevent monopolistic practices by allowing other marketers to import diesel until local refineries are fully functional.
5. Letter to Senate President: A letter sent to Senate President Godswill Akpabio in July 2024, signed by DAPPMAN’s Executive Secretary Olufemi Adewole, emphasized the need for fair deregulation and urged against the creation of a monopoly.
The recent news highlights a dispute between the Dangote Refinery and the Depot and Petroleum Products Marketer's Association of Nigeria (DAPPMAN). The conflict centers on allegations by the Vice President of Dangote Industries Limited, Devakumar Edwin, that oil marketers reported Dangote Refinery to President Bola Tinubu, citing its low-priced diesel as harmful to their businesses.
Key points from the news:
1. Accusation Against DAPPMAN: Edwin claims DAPPMAN reported Dangote Refinery for selling diesel at reduced prices, impacting the marketers' ability to compete.
2. DAPPMAN's Response: The association denied the accusation and expressed concerns over a potential monopoly by Dangote in the supply of diesel and other petroleum products. They argue that such dominance restricts market competition and deprives Nigerians of alternative, potentially cheaper options.
3. Monopoly Concerns: DAPPMAN warned that allowing Dangote to dominate the supply of diesel could lead to price controls, similar to its influence in other sectors like cement and sugar. They highlighted that Dangote’s diesel product has higher sulphur content than required, yet local regulators restrict imports of better-quality diesel.
4. Call for Government Intervention: DAPPMAN asked the government to prevent monopolistic practices by allowing other marketers to import diesel until local refineries are fully functional.
5. Letter to Senate President: A letter sent to Senate President Godswill Akpabio in July 2024, signed by DAPPMAN’s Executive Secretary Olufemi Adewole, emphasized the need for fair deregulation and urged against the creation of a monopoly.