The management of Dangote Petroleum Refinery has raised alarm over what it describes as a fresh demand for subsidy by oil marketers under the umbrella of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
In a statement issued on Wednesday, the refinery alleged that marketers are pressuring it to absorb or pass on to Nigerians a subsidy burden of over N1.505 trillion annually in order to align depot prices with the refinery’s gantry price.
The figure, according to Dangote Refinery, was derived from the country’s average daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO).
The statement reads in part:
“Based on daily consumption volumes of 40 million litres of PMS and 15 million litres of 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 transfer to consumers.
“Specifically, the marketers are demanding that we discount N70 per litre in coastal freight, NIMASA, NPA and other associated charges, as well as N5 per litre for pumping into vessels to enable them 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 raising our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion, a practice that historically drained the nation’s resources and defrauded the Federal Government for years.”
The refinery emphasized that it would maintain its “logistics-free initiative”, urging marketers to lift products directly from its gantry instead of pushing for discounts it considers unsustainable.
Dangote Refinery also expressed concern over what it described as “dumping” by some marketers. According to the company, between June and September, it exported a total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes of similar products within the same period.
“This practice is detrimental to Nigeria’s economy and the welfare of its citizens,” the statement added.
The refinery reaffirmed its commitment to working with government agencies, while also pledging to hold institutions accountable where necessary.
“Dangote Petroleum Refinery remains firmly committed to the progress and well-being of Nigeria and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” the statement concluded.
The development comes amid heightened public debate on fuel pricing and distribution, with analysts warning that any reintroduction of subsidy elements could undermine the Federal Government’s economic reform agenda.
