Fuel Price Cut: DAPPMAN Flags Dangote Delivery Scam

The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has described the fuel distribution scheme announced by Dangote Refinery as “misleading and a scam.”

In a statement released amid the refinery’s ongoing face-off with the National Union of Petroleum and Natural Gas Workers (NUPENG), DAPPMAN argued that the initiative creates more burdens for petroleum marketers rather than easing costs.

Dangote Refinery had on Thursday announced plans to begin nationwide distribution of fuel and diesel using 4,000 compressed natural gas (CNG) trucks. But NUPENG accused the refinery and its promoters of seeking to undermine the union and other players in the downstream oil sector.

According to DAPPMAN, the refinery’s so-called “free delivery” offer is deceptive, since marketers are compelled to lift at least 25% of their allocations directly from the refinery gantry using only Dangote-owned trucks, with charges applied based on destination.

“This arrangement imposes additional logistical and financial burdens on marketers, limits operational flexibility, and undermines the narrative of cost relief being provided to the local market,” the association said.

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DAPPMAN further alleged that Dangote Refinery’s repeated fuel price reductions are not patriotic gestures but rather strategic moves aimed at disrupting competition.

“These cuts often came when other importers had active cargoes at sea or in tanks, creating price shocks that destabilised the market and imposed financial strain on fellow participants, including the refinery’s own domestic buyers,” the group stated.

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Even more concerning, according to DAPPMAN, is the refinery’s alleged practice of offering lower prices to international buyers while quoting higher rates to Nigerian customers, a move the association said contradicts public claims of prioritising Nigerians.