Dangote Refinery Rejects N1.5 Trillion Subsidy Demand from DAPPMAN, Warns Against Market Manipulation

Refinery slams Depot and Petroleum Products Marketers Association of Nigeria for requesting annual subsidy to match gantry prices, pledges logistics-free initiative for direct lifting.

Dangote Refinery has officially rejected a demand from the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) for an annual subsidy of N1.505 trillion. The association reportedly sought the subsidy to align their depot fuel prices with the refinery’s gantry rates.

In a statement released by the refinery on Wednesday, September 16, 2025, the management stressed that it has no plans to raise its gantry prices or absorb the subsidy cost, which it warned would place an undue financial burden on Nigerians.

The N1.505 trillion figure, the refinery explained, was derived from Nigeria’s average daily consumption of 40 million liters of Premium Motor Spirit (PMS) and 15 million liters of Automotive Gas Oil (AGO). DAPPMAN is said to be requesting a N70 per liter discount on coastal freight, NIMASA, NPA, and other logistical costs, in addition to N5 per liter for transporting fuel from the refinery to depots in Apapa, in order to match gantry pricing.

“DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative,” the statement said, emphasizing that the refinery will not endorse practices that have historically defrauded the Federal Government.

The refinery further highlighted that between June and September, it exported 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes during the same period—an activity Dangote Refinery described as “dumping” that harms Nigeria’s economy.

Dangote Refinery reaffirmed its dedication to national development and collaboration with government agencies, pledging to hold institutions accountable where necessary. The company urged partnerships with “patriotic and responsible stakeholders” to foster sustainable growth and progress for Nigeria.

Stay Updated with the Latest News – Follow Daily Observer on X (formerly Twitter) @DailyObserverNG