Dangote Refinery Rejects N1.5 Trillion Subsidy Demand from Marketers

By Joseph Iyaji | Akahi News

The Dangote Petroleum Refinery has firmly dismissed allegations of market manipulation while revealing that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) allegedly demanded an annual subsidy of N1.5 trillion to cover additional costs arising from its preferred delivery method.

In a statement on Wednesday, the refinery explained that while it sells petroleum products to marketers at its official gantry price, DAPPMAN insists on using coastal logistics to transport products to their depots, a move that would add N75 per litre in freight and port charges plus N5 per litre for vessel pumping.

“Based on daily consumption volumes of 40 million litres of petrol and 15 million litres of diesel, this translates to an annual subsidy request of N1.505 trillion, which they want the refinery to either absorb or pass on to Nigerians,” the statement revealed.

Dangote Says No to Subsidy, Accuses Marketers of Pressure Tactics

The refinery emphasised that it would neither increase its gantry price nor assume responsibility for costs incurred due to marketers’ logistical choices, stressing that it has no intention of reviving subsidy practices that “historically defrauded the Federal Government for many years.”

It further accused DAPPMAN of launching recent public criticisms and attacks because of its refusal to meet the subsidy demands. The company maintained that it has the capacity to meet domestic fuel needs while maintaining monthly reserves of 500 million litres and supporting export markets.

Between June and September alone, the refinery said it exported 3,229,881 metric tonnes of refined products, while marketers imported 3,687,828 metric tonnes within the same period — an act it described as “dumping,” which it said undermines the Nigerian economy.

Smuggling Allegations and Legal Threats

The dispute escalated when DAPPMAN issued a seven-day ultimatum demanding that Dangote retract allegations of smuggling levelled against its members or face legal action.

Responding, Dangote Refinery reaffirmed its position, stating that any aggrieved party could seek redress through lawful means but warned that it would not be intimidated by threats or ultimatums.

“Dangote Petroleum Refinery remains firmly committed to Nigeria’s progress and wellbeing and welcomes partnerships with patriotic stakeholders to achieve national development,” the statement concluded.

Industry analysts say the standoff could trigger government intervention as concerns grow over potential impacts on fuel supply, pricing, and market competition.

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