The Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual subsidy of N1.505 trillion.
The refinery stated that this demand, if met, would enable marketers to sell products at the same price as the refinery's gantry, despite the additional costs associated with coastal transportation.
In a statement, the refinery clarified that it sells petroleum products directly at its gantry, but DAPPMAN members insist on taking delivery via coastal logistics.
This method adds an extra N75 per litre in costs, which they reportedly want the refinery to absorb.
“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,” the statement read.
Based on Nigeria's daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this N75 per litre subsidy amounts to an astronomical N1.505 trillion annually.
The refinery firmly rejected this request, stating, “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.”
The refinery alleged that its refusal to comply with this subsidy demand is the primary reason for recent public criticisms and attacks from the marketers.
The statement emphasised that DAPPMAN and other marketers are welcome to lift products directly from its gantry to benefit from its “logistics-free initiative.”
Furthermore, the refinery accused marketers of engaging in “dumping,” stating that between June and September, while it exported over 3.2 million metric tonnes of refined products, marketers imported over 3.6 million metric tonnes.
The refinery described this as an action that is detrimental to the Nigerian economy.
Reaffirming its commitment to supporting President Bola Ahmed Tinubu's reform agenda, the Dangote Refinery highlighted its role in helping to stabilise the Naira, cushion the effects of fuel subsidy removal, and create employment opportunities.
The refinery, which maintains a monthly closing stock of 500 million litres of refined products, stated it has sufficient capacity to meet Nigeria’s domestic demand and support exports.
In its final remarks, the refinery reiterated its position from a previous statement published on Monday, September 15th, and noted that any party aggrieved by its publication is free to seek legal redress.
It warned that it would not be swayed by threats or ultimatums, and is fully prepared to defend its stance through legitimate means.
The Dangote Refinery reaffirmed its commitment to the nation’s progress and its openness to partnerships with “patriotic and responsible stakeholders.”
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