*Halts Sales To Unregistered Marketers
DANGOTE Petroleum Refinery has alleged that Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) requested it to hike the price of petrol and diesel by N75 per litre to allow its members to match the refinery’s gantry prices at their respective depots.
Such increase would result in the pump price of Premium Motor Spirit (PMS) and Automotive Gas Oil (AGO), also known as diesel, rising to as high as N950 and N1,090 per litre, respectively, in some parts of Nigeria.
The refinery said although it offers petroleum products to marketers at its gantry price, DAPPMAN insisted on taking delivery via coastal logistics, an option that would incur an additional N75 per litre in extra costs.
Based on daily consumption volumes of 40 million litres of PMS and 15 million litres of Automotive Gas Oil (AGO), this amounts to an additional yearly cost of N1.50 trillion (N1,505,625,000,000), effectively asking the refinery to absorb and pass on to Nigerians.
According to the Refinery: “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 N1.5trillion, 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 alleged that its refusal to comply with DAPPMAN’s subsidy request is the core reason behind recent public criticisms and attacks, reiterating that it has sufficient capacity to meet domestic demand and support exports, saying it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.
It added: “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 well-being of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development.”
Meanwhile, the refinery has suspended self-collection gantry sales of petroleum products at its facility with effect from Thursday, September 18.
A recent mail correspondence signed by the Group Commercial Operations Department of the company and addressed to its marketing partners said the directive aims to promote wider adoption of the refinery’s free delivery scheme for retail outlets and to halt sales to unregistered marketers, whether they buy directly from its depot or indirectly through other marketers.
It explained that the move was an operational adjustment to at improving efficiency, urging marketers to adopt its Free Delivery Scheme (FDS), which provides direct shipments to retail outlets, just as it warned that any payments made after the effective date would be rejected.
According to the mail: “We wish to inform you that, effective 18th September, 2025, Dangote Petroleum Refinery and Petrochemicals FZE has placed all self-collection gantry sales on hold until further notice.
“In light of this development, we kindly request that all payments related to active PFIs for self-collection are also placed on hold until further notice.
“Please note that any payment made after this date will not be honoured.”
It, however, assured that its FDS remains operational for both active and newly onboarded customers, adding: “We encourage all active and newly onboarded customers to register for the DPRP FDS, which remains fully operational and offers a seamless delivery experience to your station.”
The management apologised for the inconveniences the decision might cause, soliciting understanding as it implements the operational adjustment.
The refinery has been at loggerheads with the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG) and DAPPMAN over unionism. While NUPENG accused the refinery of frustrating unionisation of its truck drivers, despite a government-brokered agreement, DAPPMAN faulted the company’s controversial FDS, alleging that marketers were being compelled to rely on Dangote’s fleet at commercial rates.
The refinery, on its part, insisted the FDS was meant to stabilise supply and cut costs, accusing marketers of seeking subsidies and fuelling diversion.
The Punch reported on Thursday, September 18, that the refinery reaffirmed its position on the ongoing dispute with DAPPMAN, insisting it would not absorb logistics costs that marketers are seeking to pass on as a subsidy.
DAPPMAN, whose members own most of the privately operated depots in the country, argued that moving products from the refinery’s Lagos location to other parts of the country requires significant logistics and coastal shipping costs.
