Dangote Petroleum Refinery has reiterated its stance in the ongoing conflict with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), making it clear that it will not take on the logistics costs that marketers want to transfer as a subsidy.
This latest clash comes during a period when the public is increasingly concerned about fuel prices and distribution logistics.
DAPPMAN, which represents the majority of privately operated depots across Nigeria, has claimed that transporting products from the refinery's Lagos base to other regions incurs substantial logistics and coastal shipping expenses.
In a statement posted on the official X account of Dangote Group on Thursday, titled “We Stand By Our Statement on DAPPMAN … Marketers’ ₦1.505trn Subsidy Demand” and signed by the management, the refinery asserted its right to protect its operations from misleading claims.
“Dangote Petroleum Refinery stands firm on its position regarding DAPPMAN, as published on Monday, September 15, in various national newspapers including The Guardian, ThisDay, The Punch, Daily Trust, and others.
“We want to stress that any party feeling wronged by our publication can pursue legal action. We have the legal right in Nigeria to defend ourselves against slander and false narratives that could harm our reputation,” the statement explained.
The refinery challenged the marketers’ assertion of a subsidy burden exceeding ₦1.5 trillion. It clarified that sales at its gantry are based on production costs along with regulated margins, with no hidden subsidies involved.
“Specifically, we note that DAPPMAN’s claim was about a subsidy on petroleum products (PMS & AGO) amounting to ₦1.505 trillion that we supposedly owe marketers. However, we sell petroleum products to marketers at our gantry based on production costs plus a regulated margin for nationwide consumption. DAPPMAN’s assertion of a subsidy is incorrect and baseless.”
“The actual logistics costs for distribution are the responsibility of the marketers, who handle the transportation of products to their depots across the nation. We are accountable for supplying millions of liters of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), which adds an additional investment cost of ₦1,505,625,000,000 that they are effectively asking us to cover for them.”
The refinery accused the marketers of attempting to shift the burden of coastal transportation onto its shoulders. “The marketers are asking Dangote Petroleum Refinery to cover the costs associated with moving products to their coastal depots nationwide via coastal vessels, in addition to loading at our refinery gantry, which is already in line with what NNPC Ltd, International Oil Companies (IOCs), and other global refineries charge,” the refinery added.
Reiterating that the Federal Government abolished fuel subsidies in May 2023, the refinery emphasized that it has no obligation to pay for the marketers’ expenses.