DAPPMAN: NNPC Refineries Can’t Meet Petrol Demand, Marketers Turn to Dangote

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The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has declared that the refineries operated by the Nigerian National Petroleum Company Limited (NNPCL) are not producing sufficient Premium Motor Spirit (PMS), also known as petrol, leaving Dangote Petroleum Refinery as the only viable domestic source of the commodity.

DAPPMAN’s Executive Secretary, Olufemi Adewole, revealed this in a chat with The PUNCH on Sunday, stating that the association’s members are unable to rely on the revamped Port Harcourt and Warri refineries as they are currently producing mostly naphtha instead of petrol.

“Our members will not go to the NNPC refineries for now. They are not optimally producing PMS. We are ready to buy from Dangote, but if we don’t get the product from Dangote refinery, the Petroleum Industry Act (PIA) allows us to import, which we’ll go for,” Adewole said.

He noted that despite efforts by the NNPC to rehabilitate its refineries, the facilities are not yet capable of meeting the country’s petrol needs. According to him, depot owners prefer to buy in bulk—up to 25 metric tonnes—and are keen to partner with the Dangote Refinery if access is granted.

“We are willing to work with Dangote, but the refinery prefers to deal selectively with a few marketers and through gantry supply. We need the portal open so we can load our vessels,” Adewole stressed.

The DAPPMAN chief expressed concern that although local production is preferred, limited access and high costs may force marketers to continue importation.

“It is not our primary will to import. We want to buy locally and sell to Nigerians, but the opportunities are limited,” he stated.

On Dangote’s readiness to supply, Adewole explained that the association has held high-level talks with the refinery’s management and is awaiting favourable terms.

“We want to work with Dangote without being shortchanged. It’s our pride that the refinery is running, but we are in business and cannot afford continuous losses,” he added.

The remarks come amid conflicting reports about the performance of NNPCL’s refineries. In November 2024, NNPCL claimed that the Port Harcourt refinery was producing a combined daily output of 1.4 million litres of PMS through blending, along with other products such as diesel, kerosene, and liquefied petroleum gas.

However, a more recent report by the Nigerian Midstream and Downstream Petroleum Regulatory Authority indicated that the Port Harcourt refinery has been operating below 40 per cent capacity, while the Warri refinery has remained shut since January due to safety issues. The Kaduna refinery is also inactive, and the managing directors of the three facilities have reportedly been relieved of their duties.

As the uncertainty lingers, DAPPMAN insists its priority is ensuring that Nigerians receive quality fuel at the best price—whether locally sourced or imported.

“The PIA allows us to import. If we can get cargo at a cheaper rate abroad, we will sell cheaper to Nigerians. What matters is getting the product to the people,” Adewole concluded.

Efforts to get a response from the NNPC spokesperson, Olufemi Soneye, were unsuccessful as of press time.

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