Dangote Refinery Rejects DAPPMAN’s N1.5trn Subsidy Demand
By Patience Ikpeme
Dangote Petroleum Refinery has disclosed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) requested an annual subsidy of about ₦1.505 trillion to enable its members to match the refinery’s gantry prices at their depots.
In a statement on Wednesday, the refinery said although it sells petroleum products to marketers at its gantry, DAPPMAN insists on lifting products through coastal logistics, an option that would add ₦75 per litre to the cost of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO).
“Specifically, the marketers are demanding that we discount ₦70/litre in coastal freight, NIMASA, NPA and other associated costs as well as ₦5/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,” the statement read.
The refinery explained that with Nigeria’s estimated daily consumption of 40 million litres of PMS and 15 million litres of AGO, the additional cost amounts to over ₦1.5 trillion annually (₦1,505,625,000,000).
It stated firmly that it would not yield to the demand, stressing that such a practice mirrors the fuel subsidy regime that drained government finances for years.
“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 ₦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,” the refinery said.
Dangote Petroleum Refinery further alleged that its refusal to bow to the request is the reason for recent public criticisms and attacks from the marketers. It maintained that it has the capacity to meet domestic demand while also supporting exports.
The statement added: “We consistently maintain a closing stock of 500 million litres of refined products in our tanks each month. 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 well-being of its citizens.”
The company said it continues to align with the reform policies of President Bola Tinubu’s administration, noting that its interventions have stabilised the naira, cushioned the impact of subsidy removal, positioned Nigeria as a refining hub, and boosted foreign exchange inflows and job creation.
“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 well-being of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” the statement added.
Reiterating its position on its earlier publication concerning DAPPMAN, the refinery said any aggrieved party should seek redress through legal channels.
“The refinery stressed that it would not be swayed by threats or so-called seven-day ultimatums and is fully prepared to defend its position through all legitimate means,” it concluded.
