Marketers Push For ₦1.5tr Subsidy To Compete With Dangote Refinery Prices

Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual subsidy of about ₦1.505 trillion to allow its members to align with the refinery’s gantry prices at their depots.

The refinery’s management disclosed that meeting such a demand would result in an additional cost of about ₦75 per litre of petrol, based on Nigeria’s daily consumption of 40 million litres. According to the refinery, DAPPMAN prefers to take delivery of products through coastal logistics rather than directly from the gantry, a method that would add significant extra charges.

In a statement, the refinery explained that the marketers are requesting discounts of ₦70 per litre to cover coastal freight, NIMASA, NPA, and other charges, as well as ₦5 per litre for pumping into vessels to transport products to depots in Apapa. The management, however, maintained that it has no intention of raising its gantry price to accommodate such requests, nor will it absorb a subsidy exceeding ₦1.5 trillion — a practice it said had defrauded the Federal Government in the past.

The refinery alleged that its refusal to accept DAPPMAN’s proposal is behind recent public criticism and attacks against its operations. It further stressed that it has sufficient capacity to meet Nigeria’s domestic fuel demand while maintaining a monthly closing stock of 500 million litres of refined products.

Between June and September, the refinery exported 3,229,881 metric tonnes of petrol, diesel, and aviation fuel, while marketers imported 3,687,828 metric tonnes during the same period — an act the refinery described as dumping, which it warned undermines the Nigerian economy and the welfare of its citizens.

Reaffirming its support for President Bola Ahmed Tinubu’s reform agenda, the refinery highlighted its role in stabilising the naira, cushioning the effects of fuel subsidy removal, positioning Nigeria as a regional refining hub, generating foreign exchange earnings, and creating jobs across sectors.

The management emphasised that while it maintains strong partnerships with relevant government agencies, it would not hesitate to challenge institutions where necessary. It added that Dangote Petroleum Refinery remains committed to Nigeria’s growth and open to collaborations with stakeholders who share a patriotic vision for national development.