Dangote Petroleum Refinery has firmly rejected demands from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to absorb logistics costs related to fuel distribution, insisting it will not provide the ₦1.505 trillion subsidy marketers are seeking.
In a statement released on Thursday via the Dangote Group’s official X account, the refinery described the subsidy claims as “false and unfounded.” It clarified that petroleum products are sold at the refinery gantry based on production costs plus a regulated margin, with no hidden subsidies involved.
Dangote Petroleum argued that marketers, who own most of Nigeria’s privately operated depots, are responsible for the logistics costs of transporting products from the refinery in Lagos to their depots nationwide, including costly coastal shipping. The company accused marketers of attempting to shift these distribution expenses onto the refinery.
“The marketers are demanding that Dangote Petroleum Refinery take on the cost of moving products to their coastal depots nationwide through coastal vessels, in addition to loading at our refinery gantry,” the statement said, noting that the refinery’s prices are already competitive with those of NNPC Ltd, international oil companies, and other global refineries.
The refinery also reminded the public that the Federal Government abolished fuel subsidies in May 2023, emphasising it has no obligation to cover marketers’ distribution costs.
Highlighting its logistical capabilities, Dangote said it has successfully managed nationwide fuel distribution through road and rail since operations began, completing over 3.4 million tanker movements between June and September.
The refinery described DAPPMAN’s claims as “wrong and misleading” and reaffirmed its commitment to supplying petroleum products nationwide at affordable prices.
The dispute arises amid ongoing tensions in Nigeria’s petroleum sector, including a recent strike by the Nigeria Union of Petroleum and Natural Gas Workers over workers’ welfare and sector practices, which briefly disrupted fuel supply in parts of the country.
