Dangote Petroleum Refinery has said that it stands by its statement on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), published on Monday, September 15, in which the association was alleged of product diversion.
DAPPMAN had threatened to take legal action if the Dangote Refinery does not retract the allegations.
The story of product diversion by DAPPMAN was published in some Nigerian national newspapers including The Guardian, ThisDay, The Punch, Daily Trust, Nigerian Tribune, Daily Sun, Vanguard, The Nation, BusinessDay, Leadership, Daily Independent, and Blueprint, as well as numerous reputable online platforms.
The development came at a time Nigeria’s downstream petroleum sector is gripped by tension over pricing, supply, and competition.
A statement signed by the management of Dangote Refinery read: “We wish to emphasise that any party who feels aggrieved by the contents of the publication is entitled to seek redress through the appropriate legal channels, without recourse to any so-called seven-day notice.
“We are fully prepared to defend our position.
We wish to clarify that the crux of DAPPMAN’s sustained attacks on Dangote Petroleum Refinery stems from their demand for an annual subsidy of N1.505 trillion to enable their members to match the refinery’s gantry prices at their own depots.
“While we offer petroleum products to marketers at our gantry price, DAPPMAN insists on receiving products via coastal logistics, an option that would add N75 per litre in additional costs.
“Based on projected 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 are effectively asking us to absorb and pass it on to consumers.
“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.
The Dangote Petroleum Refinery has sufficient capacity to meet domestic demand and support export.
“We consistently maintain a closing stock of 500 million litres of refined products in our 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 Petroleum Refinery remains steadfast in its support for the reform initiatives of His Excellency, President Bola Ahmed Tinubu. Through various strategic efforts, we have demonstrated our commitment to stabilising the Naira, cushioning the effects of fuel subsidy removal, positioning Nigeria as a refining hub, boosting foreign exchange earnings, and creating employment opportunities among others.
“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 wellbeing of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development.”
