Dangote Refinery rejects DAPPMAN’s ₦1.5trn subsidy claim, insisting it won’t absorb marketers’ logistics costs amid ongoing pricing dispute

Dangote Refinery subsidy dispute has taken a new turn as the company firmly rejected a ₦1.5 trillion subsidy demand by members of the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), sparking renewed debate over fuel pricing and logistics costs.

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In a strongly worded statement published Thursday, Dangote Petroleum Refinery insisted that it will not absorb coastal transportation costs being pushed by marketers, who claim significant expenses are incurred when moving refined products from the refinery’s Lagos base to other regions.

Labelled “misleading and unfounded,” the claim by DAPPMAN that Dangote owes a logistics subsidy to enable price uniformity was categorically dismissed.

The company stressed that sales from its refinery gantry are based strictly on production cost and regulated margins, with no hidden or backdoor subsidies.

“DAPPMAN’s claim of subsidy is false and unfounded,” the statement read. “Our logistics costs are borne by marketers, who transport products to their respective depots nationwide.”

The refinery, which began national fuel distribution earlier this year, said it has already demonstrated its capacity through over 3.4 million tanker movements across the country between June and September 2025.

The crux of the Dangote Refinery subsidy dispute centres on DAPPMAN’s reported request of ₦1.505 trillion as compensation to equalise prices at their coastal depots.

The figure was described by Dangote as an attempt to offload operational costs not agreed upon in any pricing framework.

Dangote’s management reaffirmed that fuel subsidy was abolished by the Federal Government in May 2023, and as such, the refinery is under no obligation to subsidise marketers’ business models.

“There is no subsidy in our pricing template,” the statement reiterated. “We cannot be coerced into absorbing the cost of marketers’ distribution.”

The dispute comes as fuel distribution in Nigeria faces renewed pressure following a recent strike by the Nigeria Union of Petroleum and Natural Gas Workers (NUPENG), which temporarily disrupted nationwide supply chains.

While the strike focused on worker welfare and sectoral governance, it also reignited broader public concern about deregulation, energy pricing, and the shifting burden placed on consumers and frontline workers.

In its closing remarks, Dangote Petroleum Refinery pledged continued support for energy stability and affordability, calling on all stakeholders to prioritise transparency and collaboration.

“We remain committed to ensuring energy security in Nigeria, delivering products at affordable prices, and working towards lasting stability in the petroleum sector.”

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The company also made available a detailed breakdown of the ₦1.5 trillion marketers’ request, reiterating its stand that it will not fund distribution subsidies outside its production mandate.