The Dangote Petroleum Refinery has rejected a request by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) to increase petrol and diesel prices by ₦75 per litre.
Request for Price Increase
DAPPMAN asked the refinery to raise fuel prices so that its members’ depot rates could match Dangote’s gantry prices. If approved, the move would have pushed the retail price of Premium Motor Spirit (PMS) to about ₦950 per litre, while Automotive Gas Oil (diesel) could have reached ₦1,090 in some regions.
Added Costs Through Coastal Logistics
The refinery explained that although it sells products directly to marketers at gantry prices, DAPPMAN prefers to lift through coastal logistics. This method adds about ₦75 per litre. With Nigeria’s daily use of 40 million litres of petrol and 15 million litres of diesel, the annual additional cost was calculated at roughly ₦1.5 trillion.
Refusal to Bear Subsidy Burden
The refinery stressed it has no intention of raising gantry prices to meet such demands and will not absorb a subsidy burden of more than ₦1.5 trillion. Instead, it pointed out that its logistics-free gantry lifting system already offers marketers a fair option to avoid these extra costs.
Reason for Public Criticisms
According to the company, its refusal to accommodate DAPPMAN’s request is the main reason behind recent criticisms and attacks. The refinery maintained it has enough capacity to meet domestic demand, keeping about 500 million litres in monthly stock.
Exports Versus Imports
Between June and September, the refinery exported 3.2 million metric tonnes of petrol, diesel, and aviation fuel. Marketers, however, imported 3.6 million metric tonnes in the same period. Dangote described the imports as “dumping,” saying they harm Nigeria’s economy and the wellbeing of its citizens.
Support for Reform Agenda
The company reaffirmed its support for President Bola Ahmed Tinubu’s reform agenda, citing contributions such as helping to stabilise the naira, easing the impact of subsidy removal, positioning Nigeria as a refining hub, boosting foreign exchange earnings, and creating jobs.
Commitment to National Progress
Dangote Petroleum Refinery said it remains committed to Nigeria’s growth and is open to partnerships with responsible stakeholders. However, it added that threats and ultimatums will not be entertained, as it is prepared to defend its stance through legitimate means.
Legal Redress Encouraged
The refinery stood by its earlier remarks on DAPPMAN, published on 15 September, and advised any aggrieved party to seek redress through proper legal channels rather than intimidation.
Reference: OrientalNews