Dangote Petroleum Refinery says the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) has demanded an annual subsidy of N1.5 trillion to enable members to match the refinery’s gantry prices at their own depots.

The refinery disclosed that although it offers petroleum products to marketers at its gantry price, DAPPMAN insists on taking delivery via coastal logistics, an option that would add N75 per litre in extra costs.

It said 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 N1.5 trillion, which they effectively asked the refinery to absorb or pass on to Nigerians.

The refinery alleged that its refusal to comply with DAPPMAN’s subsidy request is the core reason behind recent public criticisms and attacks.

Dangote refinery however insisted it has no intention of increasing its gantry price to accommodate such demands, and is not willing to pay a subsidy of over N1.5 trillion.

It reiterated that the refinery has sufficient capacity to meet domestic demand and support export as it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.