The Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual subsidy of about N1.5 trillion to enable members match its gantry prices at their depots.
Gantry price refers to the price of petroleum products at the loading point (gantry) of a refinery, depot, or terminal before any additional costs like transportation, handling, taxes, or distribution margins are added.
On Tuesday, DAPPMAN accused Dangote of engaging in “market-disruptive practices,” alleging its fuel price cuts were timed to weaken competition rather than serve patriotic interests.
Responding in a Wednesday statement, Dangote refinery said although it sells products to marketers at its gantry, DAPPMAN insists on coastal delivery, which would add N75 per litre in costs.
“Based on 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 N1.505 trillion (N1,505,625,000,000), which they effectively asked the refinery to absorb or pass on to Nigerians,” the statement reads.
“Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA and other associated costs as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.
“We wish to make it clear that we have no intention of increasing our gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion, a practice that historically defrauded the Federal Government for many years.”
The refinery added that marketers are free to lift products directly from its gantry to benefit from its “logistics-free initiative.”
It alleged that its refusal to comply with DAPPMAN’s subsidy request is the main reason behind recent attacks against the plant.
Dangote also said it has the capacity to meet local demand while supporting exports, maintaining a monthly closing stock of 500 million litres.
“Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping which is detrimental to the Nigerian economy and the wellbeing of its citizens,” the refinery said.
It added that it enjoys strong relations with government agencies and remains “firmly committed to the progress and wellbeing of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development.”
Meanwhile, DAPPMAN has given Dangote a seven-day deadline to retract its allegation of smuggling, threatening legal action.
Addressing the threat, Dangote said it stands by its statement published on September 15 in several outlets.
The refinery emphasised that any dissatisfied party “is free to pursue redress through proper legal avenues”
It insisted it “would not be swayed by threats or so-called seven-day ultimatums and is fully prepared to defend its position through all legitimate means.
SOURCE: THE DAILY TIMES
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