Dangote insists fuel marketers demanded N1.5trn subsidy

The face-off between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Dangote Refinery intensified yesterday as both sides traded accusations over fuel distribution. DAPPMAN, in a statement, challenged Dangote to provide evidence to back its claim that members were diverting products to neighbouring countries. “Smuggling is a national security matter. If any […]

The face-off between the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and Dangote Refinery intensified yesterday as both sides traded accusations over fuel distribution.

DAPPMAN, in a statement, challenged Dangote to provide evidence to back its claim that members were diverting products to neighbouring countries.

“Smuggling is a national security matter. If any member is complicit, let the relevant agencies act. We give Dangote Refinery a seven-day ultimatum to retract the allegation or provide proof, failing which we will seek legal redress,” it said.

The association also denied sponsoring the proposed industrial action by the National Union of Petroleum and Natural Gas Workers (NUPENG), insisting its efforts were focused on preventing disruptions to fuel supply.

It further dismissed as “misleading” claims that Nigerian marketers import Dangote-refined products from Togo, clarifying that Offshore Lome is a recognised West African trading hub, not a blending plant.

In its response, Dangote stood by its claims, insisting that DAPPMAN had demanded an annual subsidy of N1.505 trillion to match the refinery’s gantry prices at their depots.

It explained that marketers prefer to take delivery via coastal logistics, which adds N75 per litre in costs. Based on daily consumption of 40 million litres of petrol and 15 million litres of diesel, this translates into an additional N1.505 trillion yearly.

“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.

“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,” it said.

Dangote also alleged that marketers’ criticism stems from its refusal to grant such concessions, noting it has adequate capacity to meet domestic demand while maintaining a 500 million-litre closing stock monthly.