Dangote Petroleum Refinery has reaffirmed its stance in the ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), insisting it will not yield to what it described as a demand for a N1.505 trillion annual subsidy.
In a statement signed by its management on Thursday, the refinery said, “We wish to emphasise that any party who feels aggrieved by the contents of the publication is entitled to seek redress through the appropriate legal channels, without recourse to any so-called seven-day notice. We are fully prepared to defend our position.”
The company alleged that the root of DAPPMAN’s criticism lies in its subsidy demand. According to Dangote, “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.”
Explaining the cost breakdown, the refinery stated, “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 enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.”
Rejecting this demand, the management made its position clear: “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.”
The refinery also highlighted its production strength, noting, “The Dangote Petroleum Refinery has sufficient capacity to meet domestic demand and support export. We consistently maintain a closing stock of 500 million litres of refined products in our tanks each month.”
Between June and September, Dangote Refinery said it exported 3,229,881 metric tonnes of refined products, while accusing marketers of importing 3,687,828 metric tonnes in the same period, which it described as “dumping” harmful to the economy.
The management further reiterated its alignment with government reforms: “Dangote Petroleum Refinery remains steadfast in its support for the reform initiatives of His Excellency, President Bola Ahmed Tinubu. Through various strategic efforts, we have demonstrated our commitment to stabilising the Naira, cushioning the effects of fuel subsidy removal, positioning Nigeria as a refining hub, boosting foreign exchange earnings, and creating employment opportunities among others.”
It concluded by pledging collaboration with national stakeholders while affirming its loyalty to Nigeria’s progress. “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.”
