- Insists on Serving the People’s Interests
Dangote Petroleum Refinery has raised concerns over an alleged demand from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for an annual subsidy totaling N1.505 trillion. According to the refinery, DAPPMAN’s request is aimed at enabling its members to match the refinery’s gantry prices at their own depots.
The refinery explained that while it sells petroleum products to marketers at its gantry price, DAPPMAN has insisted on using coastal logistics to transport fuel. This option, the refinery noted, would add an extra N75 per litre to distribution costs.
With Nigeria’s daily consumption estimated at 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), the added logistics cost would translate to a substantial annual expense of N1.505 trillion (N1,505,625,000,000). The refinery claims that DAPPMAN expects either the refinery or Nigerian consumers to absorb this cost.
“The marketers are specifically asking us to discount N70 per litre for coastal freight, NIMASA, NPA, and related expenses, in addition to N5 per litre for pumping the products into vessels,” the refinery stated. “This is to allow them to deliver products from our facility to their depots in Apapa and sell at the same price as our gantry.”
Dangote Refinery emphasized that it has no intention of raising its gantry price to accommodate such demands or paying a subsidy of N1.5 trillion. The company also denounced the practice of fuel subsidies, which it said had resulted in significant financial losses for the Federal Government in the past. The refinery urged marketers to take advantage of its “logistics-free” initiative by lifting products directly from its gantry, without incurring extra charges.
The company suggested that its refusal to accept DAPPMAN’s demands is at the root of recent public criticisms and negative campaigns against the refinery.
Dangote Refinery reassured the public of its capacity to meet both domestic demand and export needs, maintaining a consistent closing stock of 500 million litres of refined products in its tanks each month.
“Between June and September, we exported a combined 3,229,881 metric tonnes of PMS, AGO, and aviation fuel,” the statement read. “In the same period, marketers imported 3,687,828 metric tonnes, which amounts to dumping and harms the Nigerian economy and its people.”
Reiterating its support for President Bola Ahmed Tinubu’s reform agenda, Dangote Refinery highlighted its role in stabilizing the Naira, mitigating the impacts of subsidy removal, positioning Nigeria as a refining hub, increasing foreign exchange earnings, and creating jobs across various sectors.
The company affirmed its commitment to collaborating with government agencies and upholding institutional accountability when necessary. “Dangote Petroleum Refinery is dedicated to Nigeria’s progress and wellbeing and welcomes partnerships with responsible stakeholders to advance national development,” the statement concluded.
