The Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual subsidy of ₦1.5 trillion to enable its members sell fuel at the same price as the refinery’s gantry.
Gatekeepers News reports that on Tuesday, DAPPMAN accused the refinery of engaging in “market-disruptive practices” and using fuel price cuts strategically to weaken competitors.
But in a statement on Wednesday, Dangote refinery said its pricing system was transparent, noting that marketers preferred coastal delivery instead of lifting products directly from its gantry, which adds ₦75 per litre in extra costs.
“Based on daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of ₦1.505 trillion (₦1,505,625,000,000), which they effectively asked the refinery to absorb or pass on to Nigerians,” the statement read.
The company alleged that marketers demanded it discount ₦70/litre in coastal freight, NIMASA, NPA and related charges, plus ₦5/litre for vessel pumping, in order to transport products to their depots in Apapa and still match the refinery’s gantry price.
“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 ₦1.5 trillion, a practice that historically defrauded the Federal Government for many years,” the refinery said.
Dangote refinery insisted marketers could lift products directly from its gantry under its logistics-free model, stressing that its refusal to grant the subsidy request was the real reason behind recent criticisms from DAPPMAN.
The refinery further highlighted its supply strength, saying it consistently maintains a closing stock of 500 million litres monthly, and has exported over 3.2 million metric tonnes of refined products between June and September. It accused marketers of importing 3.68 million metric tonnes of fuel in the same period, calling it “dumping” harmful to Nigeria’s economy and citizens.
“Dangote Petroleum Refinery remains firmly committed to the progress and wellbeing of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” the statement added.
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Smuggling Row and Legal Threats
On Wednesday, DAPPMAN issued a seven-day ultimatum demanding a retraction of Dangote’s earlier allegation that its members were involved in smuggling, warning of legal action if the claim was not withdrawn.
Responding, the refinery stood by its earlier publication of September 15, insisting it was ready to defend its position.
“Any party dissatisfied with the publication’s content is free to pursue redress through proper legal avenues,” it said, adding that it “would not be swayed by threats or so-called seven-day ultimatums.”
