The Depot and Petroleum Products Marketers Association of Nigeria has said that its members can only buy Premium Motor Spirit (petrol) from the Dangote Petroleum Refinery, as the refineries owned by the Nigerian National Petroleum Company Limited cannot optimally produce premium motor spirit but naphtha.
DAPPMAN’s Executive Secretary, Olufemi Adewole, confirmed this in a chat with our correspondent on Sunday. According to him, DAPPMAN members are ready to lift petroleum products from the Dangote refinery as the only viable petrol-producing facility in the country.
Consequently, he stressed that the marketers will only resort to importation if they cannot get the product locally. He highlighted that the Dangote refinery was not ready to sell premium motor spirit to its members who wanted to buy in bulk.
Adewole clarified that his members will not go to the Port Harcourt or Warri refineries for petrol because the facilities are producing naphtha, not optimally producing the much-needed petrol.
“The NNPC refineries, both the revamped Port Harcourt and Warri, are not yet optimally producing PMS; they are producing naphtha.
Our members will not go to them for now.
“But where we can get the product is Dangote refinery and we are willing to work with Dangote refinery, we are willing to buy from Dangote refinery, but if we don’t get the product from Dangote refinery, the PIA allows us to import which is what we’ll go for,” Adewole said.
He maintained that the in-country production of PMS should be ramped up to give marketers more sources of getting the product.
He clarified that it was not the primary will of the depot owners to import, saying they would rather buy locally and sell to Nigerians, but the opportunities are limited.
“In-country production should be ramped up because we need to have more sources of getting the product. It is not the primary will of the depot owners to import; we would rather buy locally and sell to Nigerians, but the opportunities are limited,” he stated.
However, he argued that the Dangote refinery prefers a selective approach that chooses a few marketers and deals with them, stressing that it prefers the gantry supply.
As depot owners, Adewole said the association loves to buy in bulk, up to 25 metric tonnes. He stressed that if the portal is open and members are allowed to load their vessels, it will be easier for them to patronise the Dangote refinery.
“Dangote refinery, in this context, prefers a selective approach that chooses a few marketers and deals through them, and it prefers the gantry supply. But we are depot owners. We pick in bulk. We are picking 15 – 25 metric tonnes. So, if the portal is open and we are allowed to load our vessels, then it’s a lot easier for us,” he posited.
Adewole noted that his members have depots all over Nigeria, and they are ready to pick PMS and diesel from the Dangote refinery, expressing doubts about whether or not the refinery is ready to sell to them.
According to him, talks are still ongoing with Dangote, but members want the best price without being shortchanged.
“We have depots all over the country, spread all over the coastal areas. So, all these depots are ready and willing to pick from Dangote. But is Dangote ready and willing? We’ve had several meetings with Dangote Refinery at the highest level of their management. We’re still talking with them. So, it’s not yet closed, but we want a situation in which we can pick from the refinery at the best possible price without being shortchanged,” he explained.
He spoke further that the aim of DAPPMAN is to ensure it gives customers in all parts of the country quality products at the best price, no matter where the product legitimately comes from.
“Wherever we can source the product, we will get it for them. The PIA allows us to import, and when people ask, ’Why are you importing? Why are you not patronising the local refinery?’ The reality is that we want to patronise the local refinery, but is the local refinery willing to give us the product? If we import cargos at a cheaper rate, we will sell to Nigerians at a cheaper rate,” he stated.
Adewole added that it is DAPPMAN’s pride that the Dangote refinery is up and running, saying the association wants to work with the refinery without losing money.
“It’s our pride that the Dangote refinery is up and running. We want to work with Dangote, but we are also not going to keep losing money because the bottom line is that we are in business,” he submitted.
In November 2024, the NNPC said the 60,000 bpd capacity Port Harcourt refinery resumed operations after years of inactivity.
The NNPC said the newly rehabilitated complex of the old Port Harcourt refinery, which had been revamped and upgraded with modern equipment, was operating at a refining capacity of 70 per cent of its installed capacity.
The company added that diesel and Pour Fuel Oil would be the highest output from the refinery, with a daily capacity of 1.5 million litres and 2.1 million litres, respectively.
This is followed by a daily output of Straight-Run Gasoline (Naphtha) blended into 1.4 million litres of Premium Motor Spirit, 900,000 litres of kerosene, and low-pour fuel oil of 2.1 million litres.
It was stated then that about 200 trucks of petrol would be released into the Nigerian market daily.
The NNPC spokesperson, Olufemi Soneye, made these claims while replying to claims from some quarters that the Port Harcourt refinery was not producing fuel, but blending through Indorama Petrochemicals.
“We are, however, aware of unfounded claims by certain individuals suggesting that the refinery is not producing products. For clarity, the Old Port Harcourt Refinery is currently operating at 70 per cent of its installed capacity, with plans to ramp up to 90 per cent.
“The refinery is producing the following daily outputs: Straight-Run Gasoline (Naphtha): Blended into 1.4 million litres of Premium Motor Spirit (PMS or petrol); Kerosene: 900,000 litres; Automotive Gas Oil (AGO or Diesel): 1.5 million litres; Low Pour Fuel Oil (LPFO): 2.1 million litres; Liquefied Petroleum Gas (LPG): Additional volumes
“It is worth noting that the refinery incorporates crack C5, a blending component from our sister company, Indorama Petrochemicals (formerly Eleme Petrochemicals), to produce gasoline that meets required specifications. Blending is a standard practice in refineries globally, as no single unit can produce gasoline that fully complies with any country’s standards without such processes,” Soneye disclosed in November.
He added that the NNPC had made substantial progress on the new Port Harcourt Refinery, which he said would begin operations “soon” without prior announcements.
In April, a report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority showed that the Port Harcourt refinery has been operating below 40 per cent capacity.
It also said the Warri Refining and Petrochemical Company has remained shut since January 25, 2025, due to safety issues in its Crude Distillation Unit Main Heater.
It was reported that the three Managing Directors of the Port Harcourt, Warri, and Kaduna refineries have been fired by the new board of the NNPC.
Meanwhile, Soneye has yet to reply to messages sent to him by our correspondent on the development.
SOURCE : PUNCH
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