Dangote ‘Exposes’ Depot Owners’ Requests, Dares Them to Sue Him if He Is Lying
- Dangote Refinery has accused depot owners of demanding over N1.5 trillion yearly subsidy to match its gantry prices
- The refinery said that the depot owners want logistics and coastal shipping costs as part of their request
- Dangote insists on its statement and challenged marketers to seek legal redress if they believe its claims are untrue
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Dangote Petroleum Refinery has defended its position in the ongoing dispute with the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN).
The refinery accused the marketers of demanding a subsidy of N1.505 trillion annually to enable them to match the refinery’s gantry prices.
Source: Getty Images
Dangote refinery ready to defend itself in court
In a statement signed by its management on Wednesday, September 18 the refinery said it stood by its earlier publication, carried by several Nigerian newspapers on September 15.
The refinery also challenged marketers to seek legal redress if they believe its claims are untrue.
The company said:
“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,."
Dangote explained that the crux of its disagreement with DAPPMAN was the marketers’ insistence that products be delivered through coastal logistics, rather than lifted directly from the refinery’s gantry.
It said this option would add N75 per litre in extra costs N70 for coastal freight, NIMASA and NPA charges, and N5 for vessel pumpinG which the marketers are effectively asking the company to absorb.
Based on projected daily consumption of 40 million litres of Premium Motor Spirit (PMS) and 15 million litres of Automotive Gas Oil (AGO), the refinery estimated the additional cost at over N1.5 trillion annually.
The refinery added:
“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.
"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.”
Source: Getty Images
Dangote determined to ensure his refinery works
Dangote said its facility maintains a monthly closing stock of 500 million litres of refined products, with a combined export of 3.23 million metric tonnes of petrol, diesel, and aviation fuel between June and September.
By contrast, it said marketers imported 3.68 million metric tonnes in the same period, describing the move as “dumping” Punch reports.
The statement concluded.
'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."
"The Dangote Petroleum Refinery has sufficient capacity to meet domestic demand and support export.
“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."
Depot owners accuse Dangote refinery
Earlier, Legit.ng reported that DAPPMAN has accused the Dangote Petroleum Refinery of adopting market-disruptive practice.
The DAPPMAN alleged that the recent fuel price cuts are aimed at weakening competitors rather than serving patriotic goals.
The group also claimed that Dangote offers cheaper prices to international buyers than to Nigerian marketers, a move it described as inconsistent with the company’s public stance of prioritizing the domestic market.
Source: Legit.ng
