• Marketers vow to resist probate monopoly, insist regulatory compliance

After losing its war against government’s policy on deregulation and liberalization of the domestic petroleum industry, Dangote Refinery is working to cut off its key competitors from supply of its fuel products.

The move which would likely exacerbate fuel imports into the country was announced by the company in a press statement released at the end of August, accusing the biggest fuel marketing companies in the country of selling substandard products.

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Oracle Intelligence reports that the domestic fuel market is regulated by the Nigerian Midstream and Downstream Regulatory Authority (NMDPRA) against which Dangote has also waged a sustained war.

In the latest statement Dangote declared that it “is considering restricting sales of Premium Motor Spirit (PMS) to major marketers that continue to import petrol into Nigeria, amid concerns over product quality, market transparency and the integrity of products supplied under the Dangote brand.”

In positioning for bargain, the company stated that “the proposed measure, which could take effect as early as this week, subject to further consultations and any last-minute intervention, reflects growing concerns over the continued entry of imported PMS into a market where substantial domestic refining capacity is now available.”

Statements from Dangote refinery are typically unsigned and do not attribute to any of the company’s officials, raising concerns over the validity of claims they carry.

The statement which was circulated through verified email addresses of the company’s spokesmen was attributed to “sources familiar with the refinery’s position,” alleging that “some marketers are blending substandard imported PMS with products purchased from Dangote Refinery before distributing the blended product to the market.”

Dangote refinery had also in the past denied allegations that it was also blending low grade imported products to blend with its high-octane petrol in order to scale up margins.

In threatening a ban on major marketers, Dangote accused them of practices that “could make it difficult to distinguish between products supplied directly by the refinery and products subsequently blended or handled by third parties.”

Our checks in the market and at the regulators’ offices showed no complaints of bad fuel products in the country, at least for now.

In its typical style, Dangote lashed at the regulator, accusing it of poor job in policing the market.

“The refinery has also raised concerns about the lack of a standard laboratory by the regulator and quality control infrastructure for imported petroleum products, particularly the capacity to independently verify and certify the specifications of products entering the Nigerian market,” the statement alleged.

 Oracle Intelligence reports that Dangote Refinery’s plants are configured to produce Euro-6 specification of high-octane petrol, which is best suited for newer cars with hypersensitive sensors. But the Euro-6 specification is ultralight, exhausts rapidly and costs more.

A key figure in the Major Oil Marketers Association of Nigeria (MEMAN) had explained to Oracle Intelligence that Dangote Refinery is not configured for the Nigerian market which, according to him, is populated by vehicles whose engines are configured to run perfectly on Euro-5 petrol.

He said Euro-4 and Euro-5 specifications still pass international regulations and standards used across the globe.

“Until he built his refinery, Dangote was using the same Euro-5 specification we sell. I am sure he still uses our products because he does not have a retail station of his own.

“What he is saying by implication is that every other refinery in the country, including the ones under rehabilitation by the NNPC, should not produce because they are not configured for Euro-6,” our source argued.

He made it clear that marketers would resist attempts by Dangote to capture the domestic fuel market by selling sentiments that promote private monopoly at the expense of the masses of the country.

Oracle Intelligence reports that Dangote still holds over half of the domestic market. The lasted figures released by the NMDPRA showed that importers control only 43 percent of domestic fuel supply at a time when the NNPC refineries are down and other refineries in the country cannot produce petrol.