The Dangote Petroleum Refinery has rejected a request from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for an annual subsidy of N1.505 trillion to cover additional logistics costs in distributing petroleum products.
In a statement, the refinery said that while it already offers products to marketers at its gantry price, DAPPMAN insists on taking delivery via coastal logistics—an option that would add N75 per litre in costs. With daily national consumption estimated at 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), the refinery said this translates into an extra annual cost of over N1.5 trillion, which marketers expect it to absorb or transfer to consumers.
“Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA and other associated costs, as well as N5/litre for the cost of pumping into vessels to transport products to their depots in Apapa,” the refinery stated.
Dangote stressed that it has no intention of raising its gantry price or paying what it described as a “subsidy” reminiscent of the past, when similar practices cost the Federal Government trillions of naira. It urged marketers to lift products directly from its gantry to enjoy logistics-free pricing.
The company also alleged that its refusal to grant the subsidy explains the wave of recent public criticisms against the refinery.
Highlighting its capacity, Dangote said it consistently holds a monthly closing stock of 500 million litres of refined products and has been able to meet domestic demand while also exporting surplus. 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—a move the refinery described as “dumping” and harmful to Nigeria’s economy.
Reaffirming its alignment with President Bola Ahmed Tinubu’s reform agenda, the refinery noted that its operations have helped stabilize the naira, mitigate the impact of subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and create jobs.
“Dangote Petroleum Refinery remains firmly committed to Nigeria’s progress and wellbeing, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” it said.
