By Bayo Olupohunda,Pascal Oparada

Copyright legit

The Dangote Refinery has replied to the Depot and Petroleum Product Marketers Association of Nigeria (DAPPMAN) over its cost of petrol abroadThe refinery was reacting to allegations by DAPPMAN that it sells fuel cheaper to neighbouring countries than in Nigeria The development followed the recent face-off between the refinery and depot owners over Dangote’s planned nationwide fuel distribution

Pascal Oparada, a reporter for Legit.ng, has over ten years of experience covering technology, energy, stocks, investment, and the economy.

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) sparked controversy this week after alleging that the Dangote Refinery sells petrol to international traders at a discount of N65 per litre compared to its Nigerian partners.

DAPPMAN’s executive secretary, Olufemi Adewole, told reporters that Nigerian importers had in some cases sourced Dangote’s petrol from traders in Lomé, Togo, at lower prices than what was offered locally.

Dangote responds: “The numbers don’t add up”

“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 had claimed.

But in a strongly worded statement on Monday, September 15, 2025, the Dangote Group rejected the accusations as “misleading and inaccurate.”

The company argued that if petrol were truly cheaper in Togo, Nigerian marketers would not be paying nearly double at the pump.

Dangote further stressed that the refinery has positioned Nigeria as a primary hub for affordable petrol in West Africa, even though it still imports over 60% of the crude oil it processes.

Importers accused of round-tripping

The refinery went on to accuse some marketers of engaging in round-tripping by buying Dangote’s petrol indirectly through international traders and then re-importing it into Nigeria at inflated prices.

“This practice adds billions in unnecessary transport costs while undermining Nigeria’s domestic fuel supply,” the company said.

According to a Punch report, Dangote argued that marketers genuinely focused on serving Nigerian consumers could benefit by partnering directly with the refinery.

Local partners, it noted, already receive volume discounts, credit facilities, and logistics support, which help reduce pump prices across the country.

Arbitrage, not supply, drives the controversy

Dangote also drew attention to the difference between pricing at the Single Point Mooring (SPM) and the refinery gantry.

While smuggling products via the SPM is relatively easier, moving fuel across land borders is more complex and risk-laden.

According to the refinery, the bigger issue is not supply but arbitrage, traders exploiting price gaps in neighbouring markets to make quick profits.

“For some operators, the business has never truly been about delivering petroleum products to Nigerian consumers. Instead, it revolves around diverting products to more lucrative markets in the sub-region,” the company said.

What it means for Nigerian consumers

The spat between Dangote and depot operators underscores the fragile balance in Nigeria’s downstream market.

While Dangote insists it offers fair pricing to local partners, marketers warn that the current structure could squeeze margins and create distortions.

For consumers already grappling with high pump prices, the outcome of this dispute could determine whether petrol becomes cheaper or remains a political and economic flashpoint in the months ahead.

Dangote Refinery’s bold move forces Depots to slash rates

Legit.ng earlier reported that the Dangote Petroleum Refinery set its petrol gantry price at ₦820 per litre, effective Monday, September 15, 2025.

The refinery’s direct supply of Premium Motor Spirit (PMS) — complete with free nationwide delivery — is already disrupting depot pricing.

By absorbing logistics costs, typically an extra N10–N20 per litre, Dangote has redefined the rules of engagement in the market.

Proofreading by James Ojo, copy editor at Legit.ng.

Source: Legit.ng