Dangote Petroleum Refinery has indeed accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding a staggering ₦1.505 trillion annual subsidy to enable them to match the refinery’s gantry prices at their depots. This demand is rooted in the marketers’ insistence on taking delivery of petroleum products via coastal logistics, which would add ₦75 per litre in extra costs, comprising ₦70 per litre for coastal freight and NIMASA, NPA, and other associated costs, as well as ₦5 per litre for pumping into vessels.
Breakdown of the Demand:
– Annual Subsidy Amount: ₦1,505,625,000,000
– Daily Consumption Volumes:
– PMS (Premium Motor Spirit): 40 million litres
– AGO (Automotive Gas Oil):15 million litres
– Additional Cost Per Litre:₦75
Dangote Refinery has refused to entertain this demand, stating it has no intention of increasing its gantry price to accommodate such demands or paying a subsidy of over ₦1.5 trillion. The refinery argues that its pricing template does not include subsidies, and it has sufficient logistics capacity to distribute fuel nationwide through road and rail infrastructure ¹ ².
Dangote’s Position:
– Refinery Capacity:Sufficient to meet domestic demand and support exports
– Closing Stock:500 million litres of refined products in tanks each month
– Export Performance: Exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel between June and September, while marketers imported 3,687,828 metric tonnes in the same period.
