Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding a subsidy of about N1.5 trillion annually to enable its members sell fuel at the same price as the refinery’s gantry.
In a statement, the refinery alleged that although it sells products directly to marketers at its gantry price, DAPPMAN insists on lifting through coastal logistics — a process that would add about N75 per litre to costs. With daily national consumption put at 40 million litres of petrol (PMS) and 15 million litres of diesel (AGO), the extra cost amounts to N1.505 trillion annually, which the marketers allegedly 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 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,” the statement read.
The refinery said it has no intention of raising its gantry price or paying what it described as “a subsidy reminiscent of past fraudulent practices.” It argued that marketers are free to lift directly from its gantry under its “logistics-free initiative.”
Dangote further alleged that the rejection of DAPPMAN’s request was behind recent criticisms and attacks directed at the refinery. It maintained that it has enough capacity to meet local demand and support exports, with at least 500 million litres of refined products in stock monthly.
“Between June and September, we exported a combined total of 3.2 million metric tonnes of PMS, AGO and aviation fuel, while marketers imported 3.6 million metric tonnes over the same period, an action that amounts to dumping and is detrimental to the economy,” the refinery said.
Reiterating its support for President Bola Tinubu’s reform agenda, Dangote said its operations have helped stabilise the naira, cushion the effects of subsidy removal, boost foreign exchange earnings and create jobs.
It added that any party aggrieved by its recent public statements is free to seek redress in court. “We will not be swayed by threats or so-called ultimatums and are fully prepared to defend our position by all legitimate means,” it said.
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