DANGOTE-REFINERY
PicNews
The Dangote Refinery has revealed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) demanded a staggering N1.505 trillion annual subsidy to enable its members to match the refinery’s gantry prices at their depots. According to the refinery, DAPPMAN insists on taking delivery of petroleum products via coastal logistics, which would add N75 per liter in extra costs.
The refinery calculates that based on daily consumption volumes of 40 million liters of Premium Motor Spirit (PMS) and 15 million liters of Automotive Gas Oil (AGO), the additional annual cost would amount to N1.505 trillion. DAPPMAN allegedly wants the refinery to discount N70 per liter in coastal freight, NIMASA, NPA, and other associated costs, as well as N5 per liter for pumping into vessels.
The Dangote Refinery has refused to comply with this demand, stating it has no intention of increasing its gantry price or paying such a substantial subsidy. The refinery believes this practice would be detrimental to the Nigerian economy and reiterated that marketers are welcome to lift products directly from its gantry, benefiting from its logistics-free initiative.
The refinery’s stance is that it has sufficient capacity to meet domestic demand and support exports, consistently maintaining a closing stock of 500 million liters of refined products in its tanks each month. Between June and September, the refinery exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes, an action the refinery describes as “dumping” detrimental to Nigeria’s economy.
Dangote Refinery reaffirmed its commitment to supporting President Bola Ahmed Tinubu’s reform agenda, highlighting its contributions to stabilizing the Naira, cushioning the effects of fuel subsidy removal, positioning Nigeria as a refining hub, boosting foreign exchange earnings, and creating employment opportunities. The refinery dares DAPPMAN to seek legal redress, stating it won’t be swayed by threats or ultimatums and is prepared to defend its position through all legitimate means.
