The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) says its members did not demand an annual subsidy of N1.5 trillion from the Dangote Petroleum Refinery.
The plant had said DAPPMAN allegedly demanded an annual subsidy of N1.50 trillion to enable members match the refinery’s gantry prices at their own depots.
Speaking on the issue during Channels Television’s ‘Sunrise Daily’ programme on Wednesday, Nkem Ohia, spokesperson of DAPPMAN, said the association had no knowledge of how the refinery came up with the figure.
“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” he said.
“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.”
Ohia said most refineries supply petroleum products in two key ways.
‘“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,” he said.
“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 that 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 to 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,” he said.
“Instead, he prefers to work with a few select partners, which has excluded DAPPMAN. It has one or two members of DAPPMAN.”
Ohia said what the association is requesting and what “we believe would benefit the country” is an open-door policy.
The spokesperson said there should be no need for selectivity that appears to control petroleum products distribution.
