Dangote Refinery Reaffirms Position in Dispute With Marketers Over N1.5trn Subsidy Demand
The Dangote Petroleum Refinery has reaffirmed its position in the ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), insisting that it will not yield to marketers’ demand for a ₦1.505 trillion annual subsidy to enable them to match the refinery’s gantry prices at their depots.
In a statement released on Wednesday, September 17, the management of the refinery said its earlier publication on the issue, which appeared in several national dailies and online platforms on September 15, was factual and remains valid. It added that any party dissatisfied with the publication is free to seek redress in court rather than resort to threats or ultimatums.
Dispute Over Coastal Logistics Costs
According to the refinery, DAPPMAN’s opposition is rooted in its demand that Dangote sell products via coastal logistics rather than directly at the refinery’s gantry. The marketers argued that this method would allow them to sell at competitive prices at their depots.
However, Dangote stated that the option would add about ₦75 per litre in costs, comprising ₦70 per litre in coastal freight, NIMASA and NPA charges, and other associated expenses, as well as ₦5 per litre for vessel pumping charges.
With Nigeria’s projected daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), Dangote estimated that the additional logistics charges would amount to ₦1.505 trillion annually.
“The marketers are effectively asking us to absorb this cost and pass it on to consumers, which is nothing short of demanding a return to subsidy regimes that previously drained the Federal Government,” the statement read.
No Plan to Raise Gantry Price
The refinery stressed that it has no intention of raising its gantry price or bearing the subsidy burden on behalf of marketers. Instead, it encouraged them to lift products directly from its gantry in Lagos to benefit from its “logistics-free initiative.”
The company also highlighted its capacity to meet both domestic demand and export obligations, maintaining a closing stock of 500 million litres of refined products every month. Between June and September, Dangote Refinery exported 3.2 million metric tonnes of PMS, AGO, and aviation fuel.
By comparison, marketers imported 3.6 million metric tonnes of petroleum products within the same period—an action Dangote described as “dumping” that undermines the Nigerian economy and citizen welfare.
Support for Tinubu’s Reforms
Reiterating its alignment with the Federal Government, the refinery said it remains committed to the reform initiatives of President Bola Ahmed Tinubu, particularly in stabilising the naira, cushioning the impact of subsidy removal, and positioning Nigeria as a refining hub.
It added that its operations also contribute to foreign exchange earnings, job creation, and national economic growth.
“We maintain strong working relationships with government agencies and will continue to support their efforts while holding institutions accountable where necessary,” the statement concluded.
