By Olakunle Oke
The Dangote Petroleum Refinery has alleged that members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) are demanding an annual subsidy of N1.505 trillion to enable them to match its gantry price at their depots.
According to the refinery, while it supplies petroleum products to marketers at its gantry price, DAPPMAN insists on lifting via coastal logistics, an option that adds about N75 per litre in extra costs. Based on daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), the additional cost amounts to N1.505 trillion annually – a burden the marketers allegedly expect the refinery to absorb.
“Specifically, the marketers are demanding that we discount N70 per litre in coastal freight, NIMASA, NPA and other charges, as well as N5 per litre for pumping into vessels, to allow them transport products from our refinery to their depots in Apapa and still sell at the same price as our gantry,” the refinery stated.
Dangote Refinery, however, declared it would neither increase its gantry price nor pay such subsidy, describing the request as a continuation of practices that defrauded the Federal Government for years. It maintained that marketers are free to lift products directly from its gantry to benefit from a logistics-free initiative.
The company accused DAPPMAN of instigating public criticisms and attacks after its refusal to meet the subsidy request. It stressed that it has sufficient capacity to meet local demand while supporting exports, pointing out that it keeps a monthly closing stock of 500 million litres in its tanks.
Between June and September, the refinery said it exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes, which it described as dumping harmful to Nigeria’s economy.
Reaffirming its support for President Bola Ahmed Tinubu’s reform agenda, Dangote Refinery said its operations have helped stabilise the Naira, cushion the effects of subsidy removal, boost forex earnings, and create jobs across sectors.
The company added that it maintains strong working relationships with government agencies and is committed to national development but will not hesitate to hold institutions accountable. It also restated its recent position on DAPPMAN, published in national dailies on September 15, saying aggrieved parties are free to seek legal redress.
“Dangote Petroleum Refinery remains firmly committed to Nigeria’s progress and wellbeing, and is fully prepared to defend its position through all legitimate means,” the statement added.