Dangote Petroleum Refinery has revealed what it figured out was responsible for the recent unwarranted sharp criticisms and attacks against the multi – billion dollar company by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) and other unions.
Dangote Petroleum Refinery said its refusal to comply with the marketers’ demand of a yearly subsidy of N1.505 trillion to enable members to measure up with the refinery’s gantry prices at their depots was the instigator of the criticisms.
It explained that complying with the request would lead to a spike in the price of petrol by N75 per litre.
In a statement by the Management of the Refinery, it stated that the marketers wanted Dangote to bear the yearly N1.505 trillion subsidy or pass it on to Nigerians by way of increased pump price of fuel per litre.
The N1.505tr subsidy request by the marketers was derived from the estimated Nigeria’s daily consumption of 40 million litres daily.
The refinery declared that there is no intention of increasing its gantry price to accommodate such demands or willing to pay a subsidy of over N1.5 trillion, a practice that historically defrauded the Federal Government for many years.
According to the management, the refinery offers petroleum products to marketers at its gantry price, but “DAPPMAN insists on taking delivery via coastal logistics, an option that would add N75 per litre in extra costs.”
The statement reads: “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.
“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. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative.”
It maintained that the refinery has sufficient capacity to meet domestic demand and support exports as it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.
“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 well-being of its citizens,” Dangote Refinery said.
Reiterating its commitment to supporting the reform agenda of President Bola Ahmed Tinubu, the refinery noted that through various strategic interventions, it has helped stabilise the Naira, cushion the effects of fuel subsidy removal, position Nigeria as a refining hub, boost foreign exchange earnings, and create employment opportunities across multiple sectors.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary.
“Dangote Petroleum Refinery remains firmly committed to the progress and well-being of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” it stated.
