Dangote Petroleum Refinery has alleged that the Depot and Petroleum Merchandise Entrepreneurs Affiliation of Nigeria (DAPPMAN) is demanding an annual subsidy of N1.505 trillion to allow its members to match the refinery’s gantry costs at their depots.
In a press release signed by its administration, the refinery defined that whereas it already provides petroleum merchandise to entrepreneurs at its gantry worth, DAPPMAN insists on taking supply via coastal logistics—an choice that will add N75 per litre in further prices.
The assertion learn, partly, “We want to make clear that the crux of DAPPMAN’s sustained assaults on Dangote Petroleum Refinery stems from their demand for an annual subsidy of N1.505 trillion to allow their members to match the refinery’s gantry costs at their very own depots.
“Whereas we provide petroleum merchandise to entrepreneurs at our gantry worth, DAPPMAN insists on receiving merchandise by way of coastal logistics, an choice that will add N75 per litre in further prices. Based mostly on projected day by day consumption volumes of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gasoline Oil (AGO), this quantities to a further annual price of N1.505 trillion (N1,505,625,000,000), which they’re successfully asking us to soak up and cross on to shoppers,” the assertion added.
The assertion said additional that the entrepreneurs demanded that the refinery low cost N70/litre” in coastal freight, NIMASA, NPA and different related prices in addition to N5/litre for the price of pumping into vessels to allow them to move merchandise from our refinery to their depots in Apapa and promote on the identical worth as our gantry.”
“We want to make it clear that we’ve got no intention of accelerating our gantry worth to accommodate such calls for, nor are we keen to pay a subsidy of over N1.5 trillion, a follow that traditionally defrauded the Federal Authorities for a few years. DAPPMAN and different entrepreneurs are welcome to elevate merchandise straight from our gantry and profit from our logistics-free initiative.
“The Dangote Petroleum Refinery has ample capability to fulfill home demand and help exports. We constantly keep a closing inventory of 500 million litres of refined merchandise in our tanks every month. Between June and September, the refinery exported a mixed whole of three,229,881 metric tonnes of PMS, AGO, and aviation gas, whereas entrepreneurs imported 3,687,828 metric tonnes over the identical interval, an motion that quantities to dumping, which is detrimental to the Nigerian economic system and the well-being of its residents,” the assertion mentioned.
Backstory
On Wednesday, DAPPMAN rejected allegations made by the Dangote Petroleum Refinery that it’s sponsoring oil union employees to go on strike, describing them as deceptive, factually incorrect and damaging to the integrity of Nigeria’s downstream petroleum sector.
In a press release issued on Wednesday, the affiliation mentioned it was compelled to appropriate “distortions” in a press launch issued by Dangote on 15 September, warning that such claims threat undermining public belief and regulatory confidence out there.
Among the many points addressed, DAPPMAN denied sponsoring the Nigeria Union of Petroleum and Pure Gasoline Staff (NUPENG) in its proposed industrial motion, stressing that labour unions and business associations akin to NUPENG, NARTO, MEMAN, IPMAN and DAPPMAN function independently.
“Our position has been one in all de-escalation, targeted on averting disruption to gas provide and nationwide mobility,” the assertion mentioned.
On gas pricing, the affiliation argued that current pump worth reductions have been pushed by authorities reforms, a stronger naira, and falling crude oil costs, not by Dangote’s operations. DAPPMAN additionally questioned why the refinery may export freely to nations like the USA however sought restrictive measures in Nigeria.
What you need to know
Aliko Dangote, CEO of Dangote Refinery, dismissed claims that his dominance in cement and petroleum quantities to a monopoly, insisting that the Nigerian economic system wants extra gamers with the size and sources to compete.
- With a capability of 650,000 barrels per day, the refinery started operations in 2024 and was designed to drastically reduce Nigeria’s reliance on imported petroleum merchandise.
- The undertaking is predicted to save lots of the nation as much as $25 billion yearly in overseas alternate and create 1000’s of jobs throughout the worth chain.
- BusinessTimes beforehand reported that the billionaire’s refinery achieved a significant milestone by exporting its first cargo of petrol to the USA.
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