…alleges DRC’s recent batch of diesel contains 1200/ppm Sulphur contents, exceeds 200/ppm imported by marketers

… urges all downstream operators to adhere to PIA 2021, avoid monopolistic practices

Oredola Adeola

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has revealed that the information from the Dangote Refinery Management accusing the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) of granting licenses indiscriminately to marketers to import substandard refined products “is laced with inaccuracies”.

DAPPMAN alleged that the Sulphur content in the AGO produced by the Dangote Refinery in its most recent batch of diesel was reported at 1200 parts per million (ppm), which exceeds the 50-ppm limit. This is, according to the association, because the refinery has yet to install its desulfurization equipment.

This was highlighted in a statement obtained by Advisors Reports and released by the management of DAPPMAN in response to comments made by Devakumar Edwin, Vice President, Oil and Gas at Dangote Industries Limited (DIL).

Edwin had in a statement published by Advisors Reports on Monday, expressed frustration over the survival of Dangote Oil Refinery and Petrochemicals, blaming NMDPRA for allowing the importation of diesel and aviation fuel with high Sulphur content from Russia.

According to DAPPMAN, the current blend of AGO from the Dangote Refinery, with a Sulphur content of 1200 ppm, is technically classified as ‘dirty fuel’ and exceeds the 200-ppm limit adhered to by marketers and depot owners.

DAPPMAN insisted that no member of the association or private fuel depot has imported any fuel outside of the regulations set by NMDPRA. The statement from DAPPMAN expressed surprise that Dangote Industries would claim that NMDPRA has been granting licenses indiscriminately.

Furthermore, DAPPMAN noted that NMDPRA had recently objected to offtakes by daughter vessels from import mother vessels via Ship-to-ship operations offshore Lome, which was protested by downstream operators and eventually rescinded.

The association also recalled its resistance to NMDPRA’s attempt to fast-track the implementation of the 50 ppm Sulphur limit on PMS and AGO imports from December 31, 2024, to June 1, 2024.

In a letter dated June 10, 2024, DAPPMAN warned the regulator against inadvertently promoting a monopoly by the Dangote Refinery in the downstream sector.

DAPPMAN therefore criticized Dangote Refinery for offering cheaper bulk sale prices to international buyers over Nigerian buyers, questioning the refinery’s patriotism.

It said, “Dangote Refinery as a business entity is free to adopt any model that suits its management however its current practice of cheaper bulk sales prices to international buyers at the detriment of Nigerian buyers calls into question their patriotism to the country.

“Several Nigerian marketers had in the recent past been offered Dangote Refinery cargoes by international trading firms at rates that are very much lower than what they were directly offered by Dangote Refinery, and this will not be in the interest of the Nigerian fuel end-user,” DAPPMAN revealed.

The association affirmed that while the success of the Dangote Refinery would be a national pride, all downstream operations must align with the Petroleum Industry Act 2021, which abhors ‘monopoly’ of any sort.

DAPPMAN restated its commitment to work with all stakeholders, including Dangote Refinery, and all other operators in the downstream sector that are willing to provide safe, healthy fuels to all Nigerians competitively giving them great and affordable fueling options for their daily activities.