Dangote dares marketers, rejects N1.5trn subsidy demand

Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual subsidy of about N1.5 trillion to enable its members sell fuel at the same price as the refinery’s gantry.

In a statement, the refinery said although it offers products directly to marketers at its gantry price, DAPPMAN insists on lifting via coastal logistics, an option that would add about N75 per litre in extra costs. With daily national consumption of 40 million litres of petrol and 15 million litres of diesel, this amounts to N1.505 trillion annually, which the marketers allegedly want the refinery to absorb or pass on to Nigerians.

“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 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,” the statement read.

Dangote insisted it would not bow to such demands, warning that it has no intention of introducing “a subsidy regime that historically defrauded the Federal Government for years.” It urged marketers to lift directly from its gantry and take advantage of what it described as a “logistics-free initiative.”

The company alleged that its refusal to grant DAPPMAN’s request was behind recent criticisms and “coordinated attacks” against the refinery. It maintained that it has the capacity to meet domestic demand while sustaining exports, with a minimum stock of 500 million litres of refined products in its tanks each month.

“Between June and September, we exported 3.2 million metric tonnes of PMS, AGO and aviation fuel, while marketers imported 3.6 million metric tonnes in the same period — an action that amounts to dumping and is detrimental to the economy and citizens,” it stated.

Reaffirming its support for President Bola Tinubu’s reform agenda, the refinery said its operations have helped stabilise the naira, cushion the impact of subsidy removal, position Nigeria as a refining hub, boost foreign exchange inflows and create jobs.

The company added that any aggrieved party is free to seek legal redress. “We will not be swayed by threats or ultimatums and are fully prepared to defend our position through all legitimate means,” it said.