₦airaland Forum

by Bunmi Aduloju


The Dangote Petroleum Refinery says the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) allegedly demanded an annual subsidy of N1.50 trillion to enable members match the refinery’s gantry prices at their own depots.

On Tuesday, DAPPMAN accused Dangote refinery of engaging in market-disruptive practices, claiming that the company’s fuel price cuts were strategically timed to weaken competition rather than to serve patriotic interests.

In a statement on Wednesday, the Dangote refinery said although it sells 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.

“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 N1.505 trillion (N1,505,625,000,000), which they effectively asked the refinery to absorb or pass on to Nigerians,” the statement reads..

“Specifically, the marketers are demanding that we discount N70/litre in coastal freight, NIMASA, NPA and other associated costs as well as N5/litre for the cost of pumping into vessels to enable them to transport products from our refinery to their depots in Apapa and sell at the same price as our gantry.

“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 refinery said DAPPMAN and other marketers are free to lift products directly from its gantry and take advantage of its logistics-free initiative.

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

The plant reiterated that the refinery has sufficient capacity to meet domestic demand while supporting exports, noting that it consistently maintains a closing stock of 500 million litres of refined products in its tanks each month.

“Between June and September, the refinery exported a combined total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel, while marketers imported 3,687,828 metric tonnes over the same period, an action that amounts to dumping which is detrimental to the Nigerian economy and the wellbeing of its citizens,” the refinery said.

The plant added that it enjoys 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 wellbeing of Nigeria, and is open to partnerships with patriotic and responsible stakeholders in pursuit of national development,” the statement further reads.


SMUGGLING ALLEGATIONS

On Wednesday, DAPPMAN issued a seven-day deadline to Dangote refinery to retract its allegation of smuggling among its members, threatening to pursue legal redress.

Addressing the lawsuit threat, Dangote refinery reaffirmed its position regarding its statement on the DAPPMAN, which was published on September 15, in several national dailies and online platforms.

Dangote refinery emphasised that any party dissatisfied with the publication’s content is free to pursue redress through proper legal avenues.

The refinery noted that it would not be swayed by threats or so-called seven-day ultimatums and is fully prepared to defend its position through all legitimate means.

Islie:
https://www.thecable.ng/dangote-refinery-dappman-demanded-n1-5trn-yearly-subsidy-to-match-our-gantry-price/

Nlfpmod.

Godfullsam:
Expect them to deny this allegations as soon as possible

Proudlyngwa:
Dappman should go and sit down 2 places
Very irresponsible set of people .
Demanding subsidy from a private entity, instead of pooling resources and becoming a formidable competitor.

Laslas 4 naija all of us na criminal, na who dem catch be thief.

If no be Seun Dracula, i for talk pass like this as wetin dey my mind for against Dappman too plenty

casualobserver:
Many rich Nigerians made their money through rent seeking e.g forex subsidies and fraudulent fuel subsidies. Now that the playing field has been leveled, many can’t compete. Now we will know who are the real businessmen.

Proudlyngwa:
Dappman should go and sit down 2 places
Very irresponsible set of people .
Demanding subsidy from a private entity, instead of pooling resources and becoming a formidable competitor.

Laslas 4 naija all of us na criminal, na who dem catch be thief.

If no be Seun Dracula, i for talk pass like this as wetin dey my mind for against Dappman too plenty

Proudlyngwa:
You are right, many many Nigerian Businesses men, have no idea of what we call Organic growth and cant survive in a real playing field, that is why thier enterprise dies off when thier patrons die orr, because they didnt grow organically and therefore have no shock absorber, most of this guys got this assets via proceeds of illegalities and can only maintain it via same

casualobserver:
When you are doing “business” by importing with official forex and import duty waivers competing against legitimate business men who obtained their forex at the black market rate and paid the official duty you own a bank and you don’t lend to businesses but make money from lending to govt and from round tripping, why won’t won’t you be successful. Those avenues for many of these business men have been closed, we will now know who the true business men are!

You see them with rickety tankers because they had no need to be efficient. Now that they have to compete in a levelplaying field, you will see the wheat separating from the chaff.

yang:
Dangote is operating in a FZE

Trade Free Zone

How much subsidy does the lost tax revenue amount to?

Or how much subsidy in the form of USD exchange rate does he recieve from CBN?

This man should stop trying to be PMS monopoly supplier in Nigeria

Live and Let live

He should refine and export others should refine and import

Let them compete on price, the Nigeria people will better for it

But i am convinced that Nigeria people prefer to suffer, they no like better thing

CyracksMrBlogger:
When most Nigerians begins to hate a particular person, know that he is good and has good intentions. For example Dangote and Tinubu.

hush15:
Quite apt... While Dangote maybe exposing the corruption in the system, make no mistake, the goal is as clear as day light. He has no competitor. All na time....

Sirjamo:
If I ever leave Nigeria, it would be because of the miserable fellow citizens I share this country with, not the government. Nigerians are more evil than their leaders. Everyone in this country is factory fitted fraudster waiting for the right opportunity to strike, at the detriment of his fellow citizens.

If not for Dangote, those thieves would have made life harder for us in this country.

Buhari’ll reduce petrol to N40/L —David-West

FORMER Minister of Petroleum and Energy, Prof. Tamunoemi David-West, said that Nigerians should expect sharp drop in petrol price from the current N87 to about N40 per litre, saying, “the president-elect, Gen. Mohammed Buhari, will reduce the fuel pump price to N40 per litre.”

https://www.vanguardngr.com/2015/04/buharill-reduce-petrol-to-n40l-david-west/

yang:
Dangote is operating in a FZE

Trade Free Zone

How much subsidy does the lost tax revenue amount to?

Or how much subsidy in the form of USD exchange rate does he recieve from CBN?

This man should stop trying to be PMS monopoly supplier in Nigeria

Live and Let live

He should refine and export others should refine and import

Let them compete on price, the Nigeria people will better for it

But i am convinced that Nigeria people prefer to suffer, they no like better thing

Sirjamo:
If I ever leave Nigeria, it would be because of the miserable fellow citizens I share this country with, not the government. Nigerians are more evil than their leaders. Everyone in this country is factory fitted fraudster waiting for the right opportunity to strike, at the detriment of his fellow citizens.

If not for Dangote, those thieves would have made life harder for us in this country.