The Dangote Petroleum Refinery has opened up that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) demanded an annual subsidy of ₦1.505 trillion to cover additional logistics costs tied to transporting products from the refinery to their depots.
In a statement released this week, the refinery explained that while it offers products to marketers at its gantry price, DAPPMAN insists on coastal delivery through vessels, an option that adds ₦75 per litre to fuel costs. Based on Nigeria’s daily consumption of 40 million litres of petrol (PMS) and 15 million litres of diesel (AGO), this amounts to more than ₦1.5 trillion yearly, a burden Dangote says it will not absorb or transfer to consumers.
“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. 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,” the refinery stated.
The company alleged that its refusal to entertain the subsidy request explains the wave of public criticisms it has faced in recent weeks. It stressed that the refinery has the capacity to meet local demand and still support exports, with a monthly stock of 500 million litres in its tanks.
Between June and September, the refinery exported over 3.2 million metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3.6 million metric tonnes within the same period – an act the refinery described as dumping that hurts Nigeria’s economy.
Reaffirming its support for President Bola Tinubu’s reform agenda, Dangote said it has played a crucial role in stabilising the Naira, cushioning the effects of subsidy removal, and positioning Nigeria as a refining hub.
“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.
The refinery further stood by its earlier publication on the subsidy issue, warning that it would not bow to threats or seven-day ultimatums. It advised aggrieved parties to seek legal redress, noting that it is prepared to defend its position in court if necessary.
