Dangote Refinery Says It Won’t Absorb Extra N1.5trn Costs Demanded By DAPPMAN

Dangote Petroleum Refinery has restated its position in the ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), saying the group’s demand of an annual subsidy of ₦1.505 trillion to cover additional costs linked to coastal logistics was untenable.

In a statement signed by its management and made available to journalists on Wednesday, September 17, 2025, the company said it stands by its earlier sponsored publication in several national newspapers on September 15, despite DAPPMAN’s threats of a seven-day ultimatum.

“Dangote Petroleum Refinery stands by its statement on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), published on Monday, September 15,” the statement read.

“We wish to emphasise that any party who feels aggrieved by the contents of the publication is entitled to seek redress through the appropriate legal channels, without recourse to any so-called seven-day notice. We are fully prepared to defend our position,” the refinery said.

The refinery alleged that DAPPMAN’s “sustained attacks” stemmed from its insistence that Dangote should discount coastal freight and other associated charges amounting to ₦75 per litre, so that marketers can match its gantry prices at their depots in Apapa.

According to Dangote, the marketers were effectively asking it to absorb ₦70 per litre in coastal freight, NIMASA and NPA charges, plus an additional ₦5 per litre for vessel pumping costs.

“Based on projected daily consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional annual cost of ₦1.505 trillion, which they are effectively asking us to absorb and pass it on to consumers,” the statement read.

Dangote maintained that it has no intention of raising its gantry prices or paying what it described as a subsidy that mirrors past practices which defrauded the federal government.

“DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative,” the company said.

The refinery also faulted the continued importation of petroleum products by marketers, describing it as “dumping” that undermines the local economy. Between June and September 2025, Dangote said it exported 3,229,881 metric tonnes of refined products while marketers imported 3,687,828 metric tonnes within the same period.

On capacity, the company stressed that it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month and is capable of meeting both domestic demand and export needs.

Dangote Petroleum Refinery reaffirmed its commitment to the economic reforms of President Bola Tinubu, saying it would continue to support efforts aimed at stabilising the naira, cushioning the impact of fuel subsidy removal, and positioning Nigeria as a refining hub.

“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary,” the statement added.

The management further pledged that the refinery would remain open to partnerships with what it called “patriotic and responsible stakeholders in pursuit of national development.”