Depot Owners Deny Allegations of Hindering Local Refineries

Depot owners dismiss accusations of blocking local refineries, insisting they are committed to the growth of the local refining industry.

DAPPMAN has vehemently refuted allegations that it is impeding the functioning of domestic refineries to sustain petroleum importation.

Olufemi Adewole, the Executive Secretary of DAPPMAN, explained that their association comprises of patriotic investors who have invested significant amounts into developing infrastructure and facilities across all sectors involved in downstream operations.

According to him, their utmost objective is to guarantee the uninterrupted provision and dissemination of petroleum products across Nigeria.

Proposing that depot owners purposely hinder the operations of local refineries or cheat their own nation is a ludicrous concept.

Rational business practices dictate that entrepreneurs would naturally prefer to do business with suppliers who provide quality products at reasonable prices without unnecessary obstacles in obtaining them.

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He stated that they would prefer to avoid the difficult task of obtaining foreign exchange for their trading operations, which puts strain on the naira.

Instead, he suggested sourcing all products from domestic refineries using local currency as per President Bola Ahmed Tinubu’s instruction.

The initiation of Dangote refinery’s operations has sparked excitement among DAPPMAN and its associates, as Adewole clarified.

Despite the operational challenges encountered, depot owners who have been wrongly accused of being against local refineries are already supporting the Dangote refinery. This was emphasized by him.

The Executive Secretary defended the vital role that depot owners play in the fuel distribution chain, countering claims from certain oil industry players who suggest these owners contribute little value.

He stressed that it is not possible for the end user to buy fuel directly from refineries.

Large volumes of fuel are imported by ships and paid for with foreign exchange, which depots then distribute to branded retail outlets and independent retailers as off-takers.

According to him, the management of fleets of tanker trucks by many depots is aimed at ensuring efficient distribution and disproves the idea that depot owners only increase prices.