Dangote Petroleum Refinery has revealed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) requested an annual subsidy of N1.505 trillion to enable its members to match the refinery’s gantry prices at their depots.
The refinery explained that while it sells petroleum products to marketers at its gantry price, DAPPMAN prefers delivery via coastal logistics, which would add 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 added cost amounts to N1,505,625,000,000 annually, which marketers wanted the refinery to absorb or pass on to consumers.
The refinery stated, “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 to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry. 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. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”
According to the refinery, its refusal to grant the subsidy explains the recent wave of public criticism from marketers. It emphasised that it has sufficient capacity to meet domestic demand and maintain exports, noting that it consistently holds a monthly closing stock of 500 million litres of refined products. Between June and September, it exported a 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, a practice the refinery described as dumping and harmful to the economy and citizens.
Reiterating its support for the reform agenda of President Bola Ahmed Tinubu, the refinery highlighted that its interventions have helped stabilise the Naira, cushion the impact of subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and generate jobs across multiple sectors. It stated, “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 wellbeing of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development.”
The refinery also reaffirmed its stance on its recent statement regarding DAPPMAN, published on Monday, 15 September, in national newspapers and online platforms. It stressed that any aggrieved parties are free to seek legal redress, declaring it would not be swayed by threats or seven-day ultimatums and is prepared to defend its position through all legitimate channels.
