Marketers demand N1.5tr subsidy to match refinery gantry price, says Dangote

Marketers demand N1.5tr subsidy to match refinery gantry price, says Dangote

Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding a yearly subsidy of N1.505 trillion to enable its members to match the refinery’s gantry prices at their depots.

The management of the refinery said doing so would lead to a hike in the price of petrol to N75 per litre.

The N1.505 trillion, according to a statement by the refinery’s management, is based on Nigeria’s daily consumption of 40 million litres.

The management said, although the refinery offers petroleum products to marketers at its gantry price, “DAPPMAN insists on taking delivery via coastal logistics, an option that would add N75 per litre in extra costs”.

The statement reads: “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 N1.505 trillion (N1,505,625,000,000), which they effectively asked the refinery to absorb or pass on to Nigerians.

“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.

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“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 N1.5 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 management alleged that its refusal to comply with DAPPMAN’s subsidy request is the reason for the recent public criticisms and attacks against the refinery.

It reiterated that the refinery has sufficient capacity to meet domestic demand and support exports as it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.

“Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping, which is detrimental to the Nigerian economy and the well-being of its citizens,” Dangote Refinery said.

Reaffirming its commitment to supporting the reform agenda of President Bola Ahmed Tinubu, the refinery stated that through various strategic interventions, it has helped stabilise the Naira, cushion the effects of fuel subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and create employment opportunities across multiple sectors.

“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating 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,” it added.

Marketers demand N1.5tr subsidy to match refinery gantry price, says Dangote