Dangote Petroleum Refinery has dismissed a request by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for a subsidy worth ₦1.505 trillion annually, insisting it will not absorb costs that could burden the Nigerian economy and citizens.
According to the refinery, DAPPMAN demanded the subsidy to enable its members to match Dangote’s gantry prices at their depots. The marketers, it explained, prefer taking products through coastal logistics rather than lifting directly from the refinery, a choice that would add ₦75 per litre in extra costs.
With Nigeria’s estimated daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), the extra logistics cost translates into ₦1.505 trillion annually.
“Specifically, the marketers are demanding that we discount ₦70 per litre in coastal freight, NIMASA, NPA, and other related costs, as well as ₦5 per litre for vessel pumping charges, to allow them move products from our refinery to depots in Apapa and still sell at our gantry price,” the refinery said.
Dangote Petroleum Refinery made it clear it would neither raise its gantry price to accommodate such demands nor take on a subsidy burden.
“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. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”
The refinery alleged that its refusal to comply with the subsidy request is at the heart of recent criticisms from marketers. It stressed that it has the capacity to meet domestic needs while maintaining strong reserves, with a closing stock of 500 million litres of refined products each month.
Between June and September 2025, Dangote Refinery exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes in the same period—an act the refinery described as dumping, harmful to Nigeria’s economy and citizens.
Reaffirming its support for President Bola Ahmed Tinubu’s reform agenda, the refinery noted that its interventions have contributed to stabilising the naira, cushioning the impact of subsidy removal, positioning Nigeria as a refining hub, boosting forex earnings, and creating jobs across sectors.
The refinery also emphasised its cordial relationship with government agencies, while vowing to hold institutions accountable where necessary.
“Dangote Petroleum Refinery remains firmly committed to the progress and well-being of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development.”
On its public statement against DAPPMAN, published on September 15, the refinery said it stands by every word and urged any aggrieved party to seek legal redress. It dismissed threats and ultimatums from marketers, declaring it is prepared to defend its position through all legitimate means.
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