Dangote Petroleum Refinery has revealed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has requested an annual subsidy amounting to N1.505 trillion. This subsidy is intended to enable its members to align their depot prices with the refinery’s gantry rates.
While the refinery supplies petroleum products to nigeria-animation-industry-billion-dollar-potential/” title=”How …'s Animation Industry Could Become a Billion-Dollar Goldmine”>marketers at its gantry price, DAPPMAN prefers to receive deliveries through coastal logistics. This method incurs an additional cost of N75 per litre. Considering the daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this translates to an extra yearly expense of N1.505 trillion (N1,505,625,000,000), which the marketers expect the refinery to absorb or pass on to Nigerian consumers.
“The marketers specifically demand a discount of N70 per litre to cover coastal freight, fees from NIMASA, NPA, and other related charges, plus N5 per litre for vessel pumping costs. This would allow them to transport products from our refinery to their depots in Apapa and sell at prices equivalent to our gantry rates,” the refinery explained.
“We want to emphasize that we have no plans to raise our gantry prices to meet these demands, nor will we provide a subsidy exceeding N1.5 trillion-a practice that has historically led to significant losses for the Federal Government. DAPPMAN and other marketers are encouraged to collect products directly from our gantry and take advantage of our logistics-free pricing model.”
The refinery asserted that its refusal to grant DAPPMAN’s subsidy request is the main cause of recent public criticisms and attacks. It reaffirmed its capacity to satisfy domestic demand and support exports, maintaining a consistent closing stock of 500 million litres of refined products monthly.
“From June to September, the refinery exported a total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel. During the same period, marketers imported 3,687,828 metric tonnes, an act that constitutes dumping and negatively impacts Nigeria’s economy and its citizens’ welfare,” the statement added.
Reiterating its dedication to President Bola Ahmed Tinubu’s reform agenda, the refinery highlighted its strategic contributions to stabilizing the naira, mitigating the impact of fuel subsidy removal, establishing Nigeria as a refining hub, enhancing foreign exchange earnings, and generating employment across various sectors.
“We maintain strong collaborations with government agencies and are committed to supporting their initiatives, while also holding institutions accountable when necessary.
“Dangote Petroleum Refinery remains deeply invested in Nigeria’s advancement and welcomes partnerships with patriotic and responsible stakeholders committed to national progress,” the refinery concluded.
Additionally, the refinery reaffirmed its stance regarding its recent statement about DAPPMAN, published on Monday, 15 September, across multiple national newspapers and credible online platforms.
It emphasized that any dissatisfied party is entitled to pursue resolution through proper legal channels. The refinery stated it will not be intimidated by threats or arbitrary deadlines and is fully prepared to defend its position through all lawful means.
