Dangote Refinery Denies Selling Petrol Cheaper To Foreign Traders
The Dangote Group has dismissed allegations by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that its refinery sells petrol at cheaper rates to international traders than to Nigerian marketers.
DAPPMAN’s Executive Secretary, Olufemi Adewole, had alleged in an interview with Punch that members of the association were able to buy Dangote petrol through international traders in Lomé, Togo, at prices ₦65 lower than what the refinery sells locally.
“Dangote sells to international traders at ₦65 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,” Adewole claimed.
Reacting in a statement on Monday, the Dangote Group described the claims as “misleading and inaccurate.”
The company queried why the petrol pump price in Nigeria is ₦865 per litre, while in Togo the cost is more than double.
“It is incorrect to claim that the price of petrol in Togo is lower than in Nigeria. A straightforward check reveals that the average pump price in Lomé stands at approximately 680 CFA francs per litre, equivalent to ₦1,826,” the statement read.
The company stressed that its refinery has positioned Nigeria as the primary source of affordable petrol feedstock for West Africa, despite importing more than 60 per cent of the crude oil it processes.
Dangote further accused some marketers of engaging in round-tripping, buying petrol from Nigeria, routing it through Togo, and re-importing it at inflated prices.
“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?” the company asked.
The refinery argued that marketers committed to Nigeria’s domestic market should partner directly with it, noting that local partners already enjoy volume-based discounts, credit facilities, and logistics support.
“If their true intention is to serve the Nigerian domestic market, why not join the growing list of local partners of the Dangote refinery? These partners, in addition to receiving high-quality products, benefit from incentives designed to enhance local availability at a recommended rate agreed by all parties,” the statement added.
Dangote also clarified that price differences may exist depending on whether marketers lift products from the Single Point Mooring (SPM) facility or directly from the gantry. It warned that for some operators, the Nigerian fuel business has never truly been about serving local consumers.
“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,” it said.
