Dangote Refinery Rejects N1.5trn Demand From Fuel Marketers

Dangote Petroleum Refinery has raised alarm over a demand by the Depot and Petroleum Products Marketers Association of Nigeria for a subsidy of about N1.5 trillion to cover extra costs of transporting fuel through coastal routes.

The refinery said the request, if granted, would either force it to increase its prices or pass the burden to Nigerians.

The refinery explained that it sells products directly to marketers at its gantry in Lagos, but marketers prefer to move the products by sea to depots in Apapa. This choice, according to the refinery, attracts additional costs of N75 per litre, which marketers want it to absorb. With Nigeria consuming an estimated 40 million litres of petrol and 15 million litres of diesel daily, the extra charges amount to more than N1.5 trillion each year.

Dangote Petroleum Refinery said it would not accept the proposal, warning that such practices in the past drained government resources through subsidy fraud. It stressed that the facility has enough capacity to meet local demand and continues to hold about 500 million litres of fuel in stock each month.

Between June and September this year, the refinery exported more than 3.2 million metric tonnes of petrol, diesel, and aviation fuel. During the same period, marketers imported 3.6 million metric tonnes of fuel, which the refinery described as dumping that harms the economy and discourages domestic refining.

The company linked the recent public criticism of its operations to its refusal to bow to the marketers’ request. It maintained that its operations are designed to reduce logistics costs, support the removal of fuel subsidy, and provide cheaper products to Nigerians who buy directly from its gantry.

Dangote Petroleum Refinery pointed to its role in helping to stabilise the naira, create jobs, and strengthen Nigeria’s foreign exchange earnings through exports. It assured that it remains committed to national growth and will continue to work with government agencies while holding institutions accountable where necessary.

The refinery also stood by its earlier statement on the matter, saying that any group unhappy with its position should approach the courts. It said it would not be moved by threats or ultimatums and is prepared to defend its stand using legal and legitimate means.