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    Home » Dangote Group Accuses Oil Cartels of Sabotage Over Refinery Price Cuts
    Business

    Dangote Group Accuses Oil Cartels of Sabotage Over Refinery Price Cuts

    Company clashes with NUPENG, DAPPMAN as refinery begins direct petrol supply to 11 states
    Atoyebi AdenikeBy Atoyebi AdenikeSeptember 16, 2025No Comments2 Mins Read
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    Company clashes with NUPENG, DAPPMAN as refinery begins direct petrol supply to 11 states
    Company clashes with NUPENG, DAPPMAN as refinery begins direct petrol supply to 11 states
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    By Atoyebi Nike
    The Dangote Group has accused powerful oil import cartels of working through labour unions and industry associations to frustrate the operations of its $20 billion refinery, warning that such actions threaten Nigeria’s quest for energy independence.

    In a statement on Monday, the company criticised the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for rejecting its recent price reductions in petrol.

    “It is regrettable that NUPENG has allowed itself to be weaponised by powerful oil import cartels that have consistently benefitted from Nigeria’s dependence on imported petroleum products to the detriment of national growth and economic independence,” the group said.

    NUPENG had dismissed the price cut as a “Greek gift,” while DAPPMAN labelled it “unpatriotic.” Dangote argued that such reactions exposed vested interests, adding: “If it is truly cheaper to import than to refine locally, why have importers not voluntarily reduced pump prices ahead of our interventions? Nigerians can confirm that price drops only occur in response to Dangote Refinery’s actions.”

    DAPPMAN, in a counter-statement signed by its Executive Secretary, Olufemi Adewole, accused the refinery of adopting practices that distort competition and strain domestic operators. It alleged that Dangote sometimes offered lower prices to international buyers than to Nigerian offtakers, while also imposing “hidden costs” by compelling marketers to lift 25 percent of allocations directly from the refinery gantry using Dangote-owned trucks.

    Meanwhile, Dangote Petroleum Refinery announced it had commenced direct petrol supply to 11 states from Monday, September 15. Pump prices were set at N841 per litre for Lagos, Ogun, Oyo, Ondo, Osun, and Ekiti, and N851 per litre for Abuja, Delta, Rivers, Edo, and Kwara, with a gantry price of N820 per litre. The company also pledged free delivery of products to registered retail stations in the designated states.

    See also  OPEC+ Output Hike Threatens Nigeria’s Oil Revenue Targets

    Africa’s largest refinery, with a capacity of 650,000 barrels per day, was inaugurated in 2024 to reduce Nigeria’s dependence on imported fuels. In July 2025, it received 4,000 CNG trucks under a ₦720 billion investment programme aimed at distributing 65 million litres daily, creating over 15,000 jobs, and saving more than ₦1.7 trillion annually in energy costs.

    Dangote Refinery DAPPMAN Nigeria energy security NUPENG oil cartels petrol prices PMS distribution
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    Atoyebi Adenike
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