High Prices: IPMAN Criticizes Dangote Refinery

Operators in the downstream oil sector urge the Federal Government to ensure crude oil supply to the Dangote refinery, criticizing high prices and lack of collaboration as reasons for preferring imported fuels.

Eko Hot Blog reports that operators in the downstream oil sector have urged the Federal Government to ensure the provision of crude oil to the Dangote Petroleum Refinery, as marketers prefer cheaper imported refined petroleum products over those from the Dangote refinery.

They criticized international oil companies in Nigeria for selling crude to the Dangote refinery at prices above the global market rate, calling this an “anti-country practice.”

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The Independent Petroleum Marketers Association of Nigeria (IPMAN) explained that the higher cost of diesel and aviation fuel produced by the Dangote refinery is driving marketers to import cheaper, and sometimes dirtier, fuels. IPMAN’s National President, Abubakar Maigandi, highlighted the lack of collaboration between Aliko Dangote and IPMAN as a contributing factor to the refinery’s challenges.

Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, accused international oil companies of attempting to undermine the refinery.

He noted that while the Federal Government had issued 25 refinery construction licenses, only Dangote Group successfully delivered. Despite this, the refinery has exported over 3.5 billion litres of diesel and aviation fuel to Europe, accounting for 90% of its output.

Maigandi blamed Dangote for the high importation of diesel, stating that if Dangote reduced his prices, it would discourage marketers from importing cheaper alternatives. He insisted that the high cost of Dangote’s diesel is the primary issue, urging Dangote to lower his prices to remain competitive.

The Dangote refinery official also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of indiscriminately granting licenses to import substandard refined products into the country.

The NMDPRA has since stayed mute on this, ignoring several calls for its reaction to this allegation.

Edwin had said the NMDPRA continued to issue import licences at the expense of the nation’s economy and at the cost of the health of Nigerians “who are exposed to carcinogenic products.”

Edwin lamented that even though Dangote was producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.”

He reiterated that as much as a quarter of the petrol and diesel available in West Africa originated from the ports of Amsterdam, Rotterdam, and Antwerp, stressing that these fuels contain sulphur and other pollutants, such as cancer-causing benzene, in quantities up to 400 times the limits permitted in Europe.

Edwin said, “The decision of the Nigerian Midstream and Downstream Petroleum Regulatory Authority to indiscriminately grant licenses for the importation of dirty diesel and aviation fuel has made the Dangote refinery expand into foreign markets.