DAPPMAN lauds Dangote Refinery’s start of petrol production

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has expressed great excitement over the commencement of premium motor spirit (PMS) production by Dangote Refinery. The refinery, which is set to revolutionise Nigeria’s petroleum industry, began producing petrol this week.

Aliko Dangote, the Executive Chairman and CEO of Dangote Refinery, announced at a press briefing on Tuesday that the 650,000-barrels-per-day refinery will supply 25 million litres of petrol to the market daily in September, with production expected to increase in the coming months.

Reacting to the development, DAPPMAN Executive Secretary, Olufemi Adewole, said the association’s members are elated that the long-anticipated locally refined petrol is finally available. “Our members had looked forward to a day like this when we can source our products locally. For us, it is a dream come true as it is a win-win situation for us all—the refinery, the marketers, and indeed, the general public,” he remarked.

A source close to the association dismissed claims that depot owners and marketers would lose their relevance with the advent of locally produced petrol. The source emphasised that depot owners and marketers play a critical role in the petroleum products supply and distribution value chain, a business model that is global and not unique to Nigeria.

“The notion that depot owners and marketers are mere middlemen with little contribution to the petroleum products supply and distribution value chain is far-fetched and untrue,” the source stated. “How can anyone suggest that because of the advent of locally produced products, depot owners and oil marketers have lost relevance? The first simple question to ask is: can all motorists in Nigeria start driving their vehicles to the refineries to fill their tanks?”

The source further explained that the distribution of refined products is a crucial aspect of the supply chain worldwide. “The huge investments in depots, loading bays, trucks, and filling stations will continue to be of compelling need in the sector. These investors are not just business people but patriots who have made sacrifices, invested hard-earned money, and taken loans in billions of naira, sometimes at very high interest rates, to ensure end-users enjoy seamless supply of the products. How can such Nigerian investors then suddenly become an object of ridicule and scorn?”

Independent industry sources agreed that local refineries, led by Dangote Refinery, will require the cooperation of all stakeholders for mutual success in Nigeria’s energy sector.