Firstsitenews-The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has disclosed that its members currently rely solely on the Dangote Petroleum Refinery for the supply of Premium Motor Spirit (PMS), also known as petrol, as the Nigerian National Petroleum Company Limited’s (NNPCL) refineries are not yet producing the product optimally.
Speaking with reporters on Sunday, DAPPMAN’s Executive Secretary, Olufemi Adewole, explained that the NNPCL’s recently revamped refineries in Port Harcourt and Warri are currently producing naphtha rather than petrol, making them an unviable option for marketers.
“Our members will not go to them for now,” Adewole stated. “The NNPC refineries are producing naphtha, not PMS. The only place where we can currently get PMS is the Dangote refinery, and we are ready to work with them.”
Adewole emphasized that depot owners prefer to source products locally and sell to Nigerian consumers, but the limited availability of PMS from local refineries may compel them to turn to importation, as permitted by the Petroleum Industry Act (PIA).
“We would rather buy locally and sell to Nigerians, but opportunities are limited. In-country production should be ramped up so that marketers have more options,” he added.
However, Adewole expressed concerns over the Dangote refinery’s current sales approach. He noted that the refinery appears to be selective, dealing with only a few marketers and preferring gantry-level distribution rather than large-scale bulk sales.
“Dangote refinery prefers a selective approach, choosing a few marketers and using gantry supply. But as depot owners, we buy in bulk—15 to 25 metric tonnes. If the portal is open and we’re allowed to load our vessels, it becomes easier for us to patronise the refinery,” he explained.
He reiterated that DAPPMAN members, who own depots across Nigeria, are prepared to lift both PMS and diesel from the Dangote refinery, but questioned whether the facility is ready to accommodate bulk buyers like them.
Adewole concluded by stressing that DAPPMAN is committed to working with the Dangote refinery and prefers domestic sourcing over importation, but will import if necessary to ensure product availability.
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