Denying the allegations, the Depot and Petroleum Products Marketers Association of Nigeria, DAPPMAN, refuted claims that they were impeding the functioning of local refineries to uphold the importation of petroleum products.
Olufemi Adewole, the Executive Secretary of DAPPMAN, clarified this stance, asserting that the association’s members are dedicated investors who have invested significantly in building various infrastructure and facilities within the downstream value chain sectors.
Their main objective, he stated, is to ensure the smooth supply and distribution of petroleum products across Nigeria.
“Suggesting that depot owners are deliberately obstructing local refineries or attempting to disadvantage the country is baseless. It is logical for any entrepreneur to prefer collaborating with a supplier offering competitive rates and easy access to products,” he explained.
“We would rather avoid the complexities of sourcing foreign exchange for our trade, which burdens the naira, and opt instead for sourcing all products from local refineries using local currency, as proposed following President Bola Ahmed Tinubu’s directive,” he added.
Adewole expressed the eagerness of DAPPMAN and its members for the commencement of operations at the Dangote refinery.
Addressing criticisms from certain oil industry members claiming that depot owners add limited value to the fuel distribution chain, the Executive Secretary defended the crucial role depot owners play in the sector.
He highlighted that the end consumer cannot directly buy fuel from refineries.
“Depots serve as off-takers of substantial fuel quantities, which are shipped, paid for in foreign currency and then dispersed to branded retail outlets and independent retailers.
“Many depots also operate fleets of tanker trucks to ensure efficient distribution, countering the misconception that depot owners solely inflate prices,” he emphasized.