Marketers Demand N1.5trn Subsidy to Match Refinery Gantry Price – Dangote

… Challenges DAPPMAN to Seek Redress in Court

Dangote Petroleum Refinery has revealed that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has demanded an annual subsidy of ₦1.505 trillion to enable its members to match the refinery’s gantry prices at their depots.

According to the refinery, while it makes petroleum products available to marketers at its gantry price, DAPPMAN insists on using coastal logistics—a choice that would add ₦75 per litre to costs. Based on Nigeria’s daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this translates to an additional ₦1.505 trillion annually, which marketers expect the refinery to absorb or pass on to Nigerians.

“Specifically, the marketers are asking us to discount ₦70/litre covering coastal freight, NIMASA, NPA and other related charges, as well as ₦5/litre for vessel pumping costs, to enable them to move products from our refinery to their depots in Apapa and still sell at our gantry price.

“We want to state categorically that we have no intention of adjusting our gantry price to accommodate such demands, nor are we willing to shoulder a subsidy burden of over ₦1.5 trillion—a practice that previously drained the Federal Government for years. Marketers are welcome to lift directly from our gantry and benefit from our logistics-free system,” the company stated.

Dangote Refinery further alleged that its refusal to grant DAPPMAN’s subsidy request is the real reason behind the recent criticisms and public attacks. It stressed that it has adequate capacity to meet Nigeria’s fuel needs, while also maintaining a monthly closing stock of 500 million litres of refined products.

Between June and September, the refinery exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes within the same period—an act the refinery described as economic dumping, harmful to both the nation and its citizens.

Reaffirming its support for President Bola Ahmed Tinubu’s reform agenda, the refinery noted that its operations have contributed to stabilising the Naira, cushioning the effects of subsidy removal, positioning Nigeria as a refining hub, boosting foreign exchange earnings, and creating employment across multiple sectors.

The company also emphasised its strong working relationship with government agencies and its readiness to hold institutions accountable when necessary.

“Dangote Petroleum Refinery remains committed to Nigeria’s progress and development, and is open to partnerships with patriotic and responsible stakeholders,” it said.

It also restated its position on the publication released Monday, 15 September, stressing that any aggrieved party is free to seek redress through proper legal channels. The company made clear it would not be intimidated by threats or deadlines and stands prepared to defend its position by all legitimate means.