The Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of pushing for a subsidy of over ₦1.5 trillion annually, insisting it will not absorb logistics costs that marketers are seeking to transfer to its operations.
In a statement posted on the Dangote Group’s official X account on Thursday, titled “We Stand By Our Statement on DAPPMAN … Marketers’ ₦1.505trn Subsidy Demand”, the refinery described marketers’ claims as false, misleading, and unfounded.
The refinery said its fuel prices are set at the gantry based on production costs and regulated margins, and that distribution costs are the responsibility of marketers.
“DAPPMAN’s claim of subsidy is false and unfounded. Our actual logistics cost of distribution is borne by marketers, who transport products to their depots nationwide. Specifically, the marketers are demanding that Dangote Petroleum Refinery take on the cost of moving products to their coastal depots nationwide through vessels, in addition to loading at our gantry, which is already at par with NNPC Ltd, International Oil Companies (IOCs), and other international refineries,” the statement read.
The refinery stressed that fuel subsidy was removed in May 2023 by the Federal Government and that it had no obligation to cover marketers’ costs.
It also highlighted its capacity to distribute fuel across the country through road and rail infrastructure, noting that between June and September it facilitated over 3.4 million tanker movements to sustain nationwide supply.
Reaffirming its commitment to energy security, the refinery assured Nigerians that it would continue to supply products at the same gantry price nationwide.
The dispute comes amid a nationwide strike declared by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) over welfare concerns, job security, and alleged high-handed practices in the downstream sector. The strike has heightened public fears of scarcity and reopened debates over subsidy removal and deregulation.
Dangote warned that marketers’ push for subsidy-style payments would undermine its operations and distort the petroleum market.
“We remain committed to ensuring energy security in Nigeria, delivering products at affordable prices, and working with all stakeholders in the downstream sector towards achieving lasting stability in the nation’s petroleum industry,” the refinery stated.