DANGOTE REFINERY REJECTS DAPPMAN’S N1.505 TRILLION SUBSIDY DEMAND, CALLS FOR LOGISTICS-FREE LIFTING

The Dangote Petroleum Refinery has rejected a demand by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for an annual subsidy of N1.505 trillion to enable members match the refinery’s gantry prices at their depots. The refinery stated DAPPMAN wants the subsidy to cover additional logistics costs of N75 per litre tied to transporting products via coastal logistics from the refinery to marketers’ depots.

“We wish to clarify that the crux of DAPPMAN’s sustained attacks on Dangote Petroleum Refinery stems from their demand for an annual subsidy of N1.505 trillion to enable their members to match the refinery’s gantry prices at their own depots,” the refinery said in a statement. It added DAPPMAN effectively wants the refinery “to absorb the cost or pass it on to consumers”.

The refinery said marketers are demanding discounts on coastal freight, NIMASA, NPA and other costs plus N5/litre for pumping into vessels. “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,” it stated.

Dangote Refinery invited DAPPMAN members to lift products directly from its gantry, benefiting from its logistics-free initiative. It asserted capacity to meet domestic demand and support exports, maintaining 500 million litres monthly closing stock and exporting 3,229,881 metric tonnes between June-September 2025.

DAPPMAN denied allegations, threatening to sue Dangote Refinery, giving a 7-day ultimatum to retract claims of product diversion. “We challenge Dangote Refinery to present verifiable evidence that DAPPMAN members are diverting products to neighbouring countries,” DAPPMAN stated, accusing the refinery of offering discounts to foreign traders but restricting Nigerian marketers.

The refinery supports President Bola Tinubu’s reform initiatives, aiming to stabilise the Naira, boost forex earnings and create jobs. A court barred NUPENG from striking against Dangote Refinery recently over labour issues.