By Ayomide Otitoju
Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual subsidy of ₦1.505 trillion to enable its members to sell fuel at the same price as the refinery’s gantry.
In a statement, the refinery said that although it makes products available to marketers at gantry prices, DAPPMAN insists on using coastal logistics, which adds about ₦75 per litre in extra costs. With Nigeria’s daily consumption of 40 million litres of petrol and 15 million litres of diesel, the additional costs would amount to ₦1.5 trillion annually.
“Specifically, the marketers are demanding that we discount ₦70 per litre in coastal freight, NIMASA, NPA and other associated costs, as well as ₦5 per litre for vessel pumping, to enable them to transport products to their depots in Apapa and still sell at our gantry price,” the statement read.
The refinery said it has no intention of raising its prices or absorbing the costs. “We are not willing to pay a subsidy of over ₦1.5 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,” it stated.
Dangote Refinery claimed that its refusal to grant the subsidy is behind recent criticisms from marketers. It stressed that it maintains sufficient capacity to meet Nigeria’s fuel needs, keeping a monthly closing stock of 500 million litres in its tanks.
Between June and September, the refinery said it exported 3.2 million metric tonnes of petrol, diesel and aviation fuel, while marketers imported 3.6 million metric tonnes in the same period, which it described as “dumping” detrimental to the Nigerian economy.
The refinery reaffirmed its commitment to President Bola Ahmed Tinubu’s reform agenda, saying its operations have helped stabilise the naira, cushion the impact of subsidy removal, boost foreign exchange earnings, and create jobs.
It added that while it maintains strong relations with regulators, it would continue to hold institutions accountable when necessary.
The refinery also stood by its earlier statement on the matter, published on September 15, stressing that any aggrieved party is free to seek legal redress. “We will not be swayed by threats or so-called seven-day ultimatums and are fully prepared to defend our position through all legitimate means,” it said.
