The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has openly criticised the Dangote Petroleum Refinery for slashing the pump price of petrol, warning that the move could destabilise the downstream oil sector. The association argued that while the price reduction may appear favourable to consumers in the short term, it poses significant risks to market competition and sustainability for independent marketers.
In a statement released in Lagos, DAPPMAN explained that the unilateral price cut by Dangote was not backed by adequate consultation with stakeholders, raising fears of a potential market monopoly. The marketers stressed that the refinery’s pricing strategy could edge out smaller players who lack the financial muscle to match such reductions, eventually leaving Dangote as the dominant force in the sector.
According to DAPPMAN, healthy competition is essential to ensuring price stability and long-term availability of petroleum products. The group cautioned that if one player controls pricing without regulatory checks, the industry may face distortions that could hurt consumers in the long run, despite the immediate benefits of cheaper petrol.
The association also called on the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) to intervene and ensure that pricing mechanisms within the sector remain fair and transparent. DAPPMAN maintained that while it welcomes Dangote’s entry into the market as a major player, regulations must be enforced to prevent practices that could cripple independent marketers and reduce diversity within the sector.
Industry analysts have observed that Dangote’s price slash reflects the refinery’s strategy to gain a stronger foothold in the domestic market, particularly after beginning large-scale petrol supply. However, experts note that without balancing mechanisms, the move could strain smaller depots and marketers who already face rising operational costs, including high transport expenses and foreign exchange challenges.
Consumers across the country have welcomed the lower petrol price, viewing it as a relief amid rising living costs. However, DAPPMAN insists that the long-term implications should not be overlooked, warning that unchecked dominance by a single refinery could result in price hikes in the future once competition is eliminated.
As debates continue, stakeholders are urging the government to strike a balance between consumer welfare and industry sustainability. The controversy underscores the delicate task of reforming Nigeria’s petroleum sector, where the entry of the Dangote Refinery has been hailed as transformative but is already sparking disputes among players in the downstream market.
