Dangote Refinery Rejects Marketers’ Request for N75 Price Increase on Fuel

Dangote Petroleum Refinery has disclosed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) urged it to raise the ex-depot price of petrol and diesel by ₦75 per litre, to enable marketers to align their own depot prices with the refinery’s gantry rates. If approved, this adjustment would push pump prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO) to about ₦950 and ₦1,090 per litre respectively in some parts of the country.

Advertisement

According to the refinery, while it already makes petroleum products available at its gantry prices, DAPPMAN insists on using coastal logistics for evacuation—a process that adds an extra ₦75 per litre in costs. Given Nigeria’s average daily consumption of 40 million litres of PMS and 15 million litres of AGO, this translates into an additional annual cost of about ₦1.5 trillion (₦1,505,625,000,000), which marketers effectively expect the refinery to absorb and transfer to consumers.

“We want to state clearly that we have no intention of raising our gantry price to accommodate such requests, nor are we willing to shoulder a subsidy burden of over ₦1.5 trillion, a system that in the past led to massive fraud against the Federal Government,” the refinery said. “DAPPMAN and other marketers are free to lift products directly from our gantry and take advantage of our logistics-free supply option.”