The Dangote Petroleum Refinery says the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) allegedly demanded an annual subsidy of N1.50 trillion to enable members match the refinery’s gantry prices at their own depots.
On Tuesday, DAPPMAN accused Dangote refinery of engaging in market-disruptive practices, claiming that the company’s fuel price cuts were strategically timed to weaken competition rather than to serve patriotic interests.
In a statement on Wednesday, the Dangote refinery said although it sells petroleum products to marketers at its gantry price, DAPPMAN insists on taking delivery via coastal logistics, an option 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 (N1,505,625,000,000), which they effectively asked the refinery to absorb or pass on to Nigerians,” the statement reads.
“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.
“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.”
Advertisement
To order your copy, send a WhatsApp message to +1 317 665 2180
The refinery said DAPPMAN and other marketers are free to lift products directly from its gantry and take advantage of its logistics-free initiative.
The Dangote refinery further alleged that its refusal to comply with DAPPMAN’s subsidy request is the main reason behind the recent public criticisms and attacks.
The plant reiterated that the refinery has sufficient capacity to meet domestic demand while supporting exports, noting that it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.
“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,” the refinery said.
The plant added that it enjoys 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,” the statement further reads.
SMUGGLING ALLEGATIONS
On Wednesday, DAPPMAN issued a seven-day deadline to Dangote refinery to retract its allegation of smuggling among its members, threatening to pursue legal redress.
Addressing the lawsuit threat, Dangote refinery reaffirmed its position regarding its statement on the DAPPMAN, which was published on September 15, in several national dailies and online platforms.
Dangote refinery emphasised that any party dissatisfied with the publication’s content is free to pursue redress through proper legal avenues.
The refinery noted that it would not be swayed by threats or so-called seven-day ultimatums and is fully prepared to defend its position through all legitimate means.
