Dangote Petroleum Refinery has revealed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) is requesting an annual subsidy of N1.505 trillion to enable its members to align their depot prices with the refinery’s gantry prices.
According to the refinery, while it sells petroleum products to marketers at its gantry price, DAPPMAN insists on taking deliveries through coastal logistics, which would add an extra N75 per litre in costs.
It explained that with Nigeria’s daily consumption averaging 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this option translates into an additional yearly cost of over N1.5 trillion, which the marketers expect the refinery to absorb or push onto Nigerians.
“Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA and other associated costs as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.”
“We wish to make it clear that we have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion, a practice that historically defrauded the Federal Government for many years. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”
The refinery stressed that its refusal to comply with DAPPMAN’s demand is the main reason behind the association’s recent criticisms and public attacks
Reassuring Nigerians of its production strength, Dangote noted that it consistently maintains a closing stock of 500 million litres of refined products every month, guaranteeing both domestic supply and exports.
“Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping which is detrimental to the Nigerian economy and the wellbeing of its citizens,” it said.
The company reiterated its alignment with President Bola Ahmed Tinubu’s reform agenda, highlighting its role in stabilising the Naira, cushioning the effects of fuel subsidy removal, positioning Nigeria as a refining hub, boosting forex earnings, and generating employment across multiple industries.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary.
“Dangote Petroleum Refinery remains firmly committed to the progress and wellbeing of Nigeria and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” it noted.
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