By Abubakar Ibrahim
Copyright businessday
Dangote Petroleum Refinery has said it is fully prepared to defend its position in court against the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), declaring that any party dissatisfied with its recent publication is entitled to pursue redress through the appropriate legal channels rather than resorting to ultimatums.
In a statement issued on Wednesday, the management of the refinery reaffirmed its stance on the subsidy row with petroleum marketers, insisting that it would not succumb to pressure from DAPPMAN, which recently threatened a seven-day notice over alleged grievances.
“We wish to emphasise that 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,” the refinery said.
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At the heart of the dispute is DAPPMAN’s demand for an annual subsidy of N1.505 trillion, which the marketers argue is necessary for them to match Dangote’s gantry price at their depots.
Dangote, however, described the request as an attempt to revive a subsidy regime that historically drained the country’s finances and defrauded the Federal Government.
According to the refinery, marketers are insisting on lifting products through coastal logistics, a process that would add N75 per litre in additional costs, N70 for freight, Nigerian Maritime Administration and Safety Agency (NIMASA) charges, Nigerian Ports Authority (NPA) fees and other levies, as well as N5 for vessel pumping.
Dangote said acceding to such demands would amount to subsidising marketers at a cost to the economy and consumers.
“DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative,” the refinery said, stressing that it had no intention of raising its gantry price or assuming responsibility for the subsidy burden.
Dangote further argued that it had both the capacity and stock to meet domestic demand while also supporting exports. It disclosed that the refinery consistently maintains 500 million litres of refined products in its tanks monthly and exported 3.23 million metric tonnes of petrol, diesel and aviation fuel between June and September.
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In contrast, marketers imported 3.68 million metric tonnes of the same products in the period, which the refinery described as “dumping detrimental to the Nigerian economy and citizens’ well-being.”
The company also reiterated its support for President Bola Tinubu’s reforms, citing efforts to stabilise the naira, cushion the removal of fuel subsidy, position Nigeria as a refining hub, and boost employment and foreign exchange earnings.
Dangote maintained that while it would continue to collaborate with government agencies in the interest of national development, it would not hesitate to challenge undue demands that could undermine the refinery’s operations or the economy at large.
