DAPPMAN Seeks N1.5 Trillion Support to Match Dangote Prices, Says Refinery

The Dangote Petroleum Refinery has alleged that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) demanded an annual subsidy of N1.5 trillion to enable its members match the refinery’s gantry prices at their depots.

In a statement issued on Wednesday, the refinery disclosed that although it supplies petroleum products to marketers at its gantry price, DAPPMAN insisted on taking delivery via coastal logistics, a process that would add N75 per litre in extra costs.

“Based on daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of N1.505 trillion, which they effectively asked the refinery to absorb or pass on to Nigerians,” the statement read.

Specifically, Dangote Refinery said DAPPMAN’s request included a N70 per litre discount covering coastal freight, Nigerian Maritime Administration and Safety Agency (NIMASA) fees, Nigerian Ports Authority (NPA) charges, and associated costs, along with N5 per litre for pumping products into vessels to Apapa depots.

The company stressed that it had no intention of raising its gantry price to meet such demands, nor would it absorb over N1.5 trillion in subsidy costs, a practice that historically defrauded the Federal Government.

“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,” the statement added.

The refinery linked the recent public criticisms and attacks from marketers to its refusal to comply with the request, while reiterating that marketers remain free to lift products directly from its gantry without incurring additional logistics charges.

According to the company, the facility maintains a closing stock of 500 million litres of refined products each month and has sufficient capacity to meet Nigeria’s domestic fuel demand while supporting exports.

Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel.

Dangote Refinery further alleged that marketers imported 3,687,828 metric tonnes of petroleum products during the same period, an action it described as dumping and detrimental to the Nigerian economy.

The company reiterated its commitment to the progress of Nigeria’s energy sector and emphasized its willingness to collaborate with patriotic stakeholders while holding institutions accountable when necessary.