KEY POINTS
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Dangote refinery subsidy dispute centers on ₦1.5 trillion claim.
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The refinery says logistics costs are marketers’ responsibility.
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Dangote insists subsidy was removed in May 2023.
Dangote Petroleum Refinery has pushed back against claims by the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) that it is responsible for shouldering logistics costs worth more than ₦1.5 trillion.
The refinery described the demand as false and misleading, insisting its pricing reflects production costs and regulated margins without hidden subsidies.
Dangote refinery subsidy dispute deepens
The dispute, which has gained attention amid rising public concern over fuel prices and distribution, was triggered by DAPPMAN’s assertion that moving products from the Lagos-based refinery to depots across Nigeria involves significant costs. The marketers argued these expenses, including coastal shipping, should be absorbed by the refinery.
In a statement posted on Dangote Group’s official X account on Thursday and signed by its management, the company reiterated that it would not bear expenses beyond the refinery gantry.
“We have the right under Nigerian law to defend ourselves against slander, falsehood, and misleading stories that could damage our reputation,” the statement said.
Dangote rejected DAPPMAN’s claim of a ₦1.505 trillion subsidy, clarifying that petroleum products are sold at its gantry at production cost plus a regulated margin. It said logistics for moving the products to marketers’ depots are the responsibility of marketers themselves.
Dangote refinery subsidy dispute and distribution costs
The refinery accused marketers of attempting to shift the burden of coastal transport to its operations, saying their demand would effectively reintroduce subsidy through the back door. According to Punch, Dangote pointed out that the federal government removed fuel subsidy in May 2023 and stressed it has no obligation to cover marketers’ expenses.
Highlighting its own infrastructure, Dangote said it has relied on rail and road distribution, completing more than 3.47 million tanker movements between June and September. It described the claims as misleading and pledged to continue supplying petroleum products nationwide at equal prices from its refinery gantry.
The refinery also noted that its standoff with DAPPMAN comes against the backdrop of a strike by the Nigeria Union of Petroleum and Natural Gas Workers, which disrupted fuel supplies and revived debate over deregulation and subsidy removal.
Dangote management vowed to maintain affordable pricing and energy security while working with stakeholders to stabilize the downstream petroleum sector.
