The Dangote Petroleum Refinery has slammed the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) over the association's demand for "an annual subsidy of N1.505 trillion" at a discount of N70/litre supplied among other associated costs, which the refinery's management stated will result in the hike of its domestic prices to consumers.

The company, in a statement it released through its management on Wednesday, alleged that the attacks against the Dangote Refinery by DAPPMAN stem from the above issue, but stated further that the refining company has no intention of increasing its "gantry price to accommodate such demands, nor are we willing to pay a subsidy of over N1.5 trillion".

It said, "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," it stated.

Throwing light on the issue, the Dangote Refinery further stated that while DAPPMAN and other marketers are welcome to lift the refinery's products for distribution, the Dangote Refinery will not be involved in such subsidy practice it alleged has overtime defrauded the Federal Government.

"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," it assured marketers.

The Dangote Refinery said it has the capacity to meet domestic demands and pledged its commitment to President Bola Ahmed Tinubu's economic reforms and that the company is poised to position Nigeria in the refining industry to boost the country's drive for foreign earnings while acting as a force for job creation among other opportunities.

"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," the DPR management added.

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