Dangote refinery: Marketers demanded N1.5trn annual subsidy to match our gantry price

Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual subsidy of N1.505 trillion to enable its members to match the refinery’s gantry price at their depots.

In a statement issued on Wednesday, September 17, 2025, Dangote refinery explained that although it supplies petroleum products to marketers at its gantry price, DAPPMAN insists on using coastal logistics, an option that adds N75 per litre in extra costs.

The refinery said 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, which the marketers effectively asked the refinery to absorb or pass on to Nigerians.

“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,” the refinery said.

Dangote maintained that it would neither increase its gantry price nor absorb the over N1.5 trillion annual cost requested by DAPPMAN, describing the demand as a return to the subsidy era that drained government coffers for years.

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The company alleged that its refusal to comply with the marketers’ demand is the reason for recent public criticisms and attacks directed at the refinery.

Reassuring Nigerians of adequate supply, Dangote refinery said it maintains a monthly closing stock of 500 million litres of refined products and has the capacity to meet domestic demand while supporting exports.

“Between June and September, we exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes within the same period – an action that amounts to dumping and harms the Nigerian economy,” Dangote refinery added.

The refinery insisted that any party aggrieved by its position is free to seek legal redress, stressing that it will not bow to threats or seven-day ultimatums.

Dangote refinery reaffirmed its commitment to supporting President Bola Tinubu’s economic reforms, noting that its operations have helped stabilise the naira, cushion the impact of subsidy removal, boost foreign exchange earnings, and create jobs across sectors.

“We remain committed to Nigeria’s progress and open to working with patriotic and responsible stakeholders to achieve national development goals,” the company said.

The Star