The Dangote Petroleum Refinery says the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) “has demanded an annual subsidy of N1.505 trillion to enable members to match the refinery’s gantry prices at their own depots.”
The refinery stated that while it offers products at its gantry, DAPPMAN wants to take delivery via coastal logistics, which would add an extra N75 per litre in costs.
The refinery said, “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.”
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The refinery clarified that it would not meet the demand, saying, “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.”
The refinery alleged that its refusal to comply with this request is “the core reason behind recent public criticisms and attacks.”
It reiterated that it has the capacity to meet domestic demand, consistently maintaining a “closing stock of 500 million litres of refined products in its tanks each month.”
The refinery also alleged that marketers are “dumping” imported products, stating, “Between June and September, the refinery exported a combined 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, an action that amounts to dumping which is detrimental to the Nigerian economy and the wellbeing of its citizens.”
Reaffirming its “commitment to supporting the reform agenda of President Bola Ahmed Tinubu,” the refinery stated that it has helped stabilize the naira, cushion the effects of fuel subsidy removal, and create jobs.
It concluded by stating, “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.”
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