…Denies demanding for N1.5trn subsidy
By Juliet Umeh
The Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, may have soft pedalled in its confrontation with Dangote Refinery, as the group yesterday sought collaboration with the latter.
Recall that DAPPMAN and Dangote Refinery management had been at daggers drawn over the operations of the facility, ranging from price to distribution.
But speaking on Channels Television’s ‘Sunrise Daily’ programme yesterday, spokesman of the association, Nkem Ohia, said, referring to Dangote Refinery: “You have wholesale, which we are angling for.
‘’That is for us to be able to pick products in bulk with vessels with a minimum capacity of 30,000 metric tons or more and sales at ex-gantry, which is like retailing.
“Ideally, most refineries lay more emphasis on ensuring that the bulk evacuates, whatever it is, through off takers who are able to lift massive quantities to be able to make sure the refinery is in a position to quickly go into production, replenish stocks as it brings in crude, it refines.
“The idea is to make sure it evacuates within a reasonable period of time, not be able to keep stock. That is not his own business model, but I’m not too sure that’s the best for him. But I can’t dictate.”
The DAPPMAN spokesperson denied being “in conflict” with the refinery, saying the association was rather interested in collaborating with the plant.
“Even before he commenced production, we reached out to him to allow us collaborate with him and be able to take products in bulk. It has been one of back and forth. Understanding has not been firmly reached.
“Instead, he prefers to work with a few select partners, which has excluded DAPPMAN. It has one or two members of DAPPMAN,’’ he said.
Ohia said what the association was requesting was an open door policy, which “we believe would benefit the country.’’
He said there should be no need for selectivity that appeared to control petroleum products distribution.
The DAPPMAN spokesman also dismissed insinuations that members of the association demanded an annual subsidy of N1.5trillion from Dangote Refinery to enable them match the refinery gantry’s prices at their own depots.
Wondering how the refinery came about the figure it alleged, Ohia said: “We don’t know where he arrived at that, because the key thing here is he alleges and it’s for him to establish and prove. Far from it, we are not asking for a N1.5 trillion subsidy.
“This is completely ridiculous. We’re not asking for anything like a subsidy. We went into negotiations and are still in negotiations with him to see whether he can bridge that gap.”
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