Marketers requests for N1.5 trillion subsidy, Dangote Refinery says

Dangote Refinery has stated that marketers are asking for a subsidy of N1.5 trillion to match the refinery’s gantry prices.

The refinery claims that the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has made a request for an annual subsidy amounting to N1.505 trillion. This, according to the refinery, would enable its members to synchronize their depot prices with those established at the refinery’s gantry.

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In a statement issued by the refinery’s management, it was explained that the N1.505 trillion figure is derived from Nigeria’s daily consumption of 40 million liters.

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.

“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 citizen.

“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”, the statement added.