The Dangote Petroleum Refinery has strongly defended its position against claims by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), accusing the group of seeking an annual subsidy of N1.505 trillion to cover the cost of transporting petroleum products from the refinery to marketers’ depots.
In a statement released on Wednesday, September 17, and published in several national dailies, the refinery declared that it will not absorb the huge financial burden being demanded by marketers, stressing that such a practice would mirror the discredited subsidy regime that had drained Nigeria’s economy for decades.
According to the refinery, DAPPMAN insists on a coastal freight charge of N70 per litre and an additional N5 per litre pumping cost to move products from the refinery to Apapa depots. Based on Nigeria’s projected daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), the demand translates to a staggering N1.505 trillion annually, which Dangote described as unrealistic and unfair.
“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 read.
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Dangote Refinery emphasized that marketers are free to lift products directly from its gantry and benefit from its logistics-friendly system, rather than pass on costs to the company. It assured Nigerians that it has more than enough capacity to meet domestic demand while also exporting refined products. Between June and September alone, the refinery exported 3.2 million tonnes of PMS, AGO, and aviation fuel, while marketers imported nearly 3.7 million tonnes within the same period, an act Dangote described as dumping and harmful to Nigeria’s economy.
The company also reiterated its commitment to President Bola Ahmed Tinubu’s reformist agenda, highlighting its role in stabilizing the naira, boosting foreign exchange, and creating employment opportunities through its operations.
Dangote Refinery expressed readiness to continue working with genuine partners and stakeholders but maintained it would resist attempts to saddle it with costs that could destabilize the sector.
