Dangote Refinery, DAPPMAN Clash Over Pricing and Subsidies
Dangote Petroleum Refinery and the Depot and Petroleum Products Marketers Association (DAPPMAN) are at loggerheads over pricing and subsidies. The refinery, Africa's largest, has no plans to increase its gantry price or pay the demanded subsidy, while DAPPMAN insists on coastal logistics and additional costs.
DAPPMAN argues that recent pump price reductions were due to government reforms, a stronger naira, and falling crude oil prices. However, it demands an annual subsidy of $600 million from the refinery to cover coastal logistics costs and align prices at their gas stations with those of the refinery. This amounts to an additional annual cost of N1.505 trillion, according to DAPPMAN.
The refinery exported a total of 3,229,881 metric tonnes of PMS, AGO, and aviation fuel between June and September, demonstrating its capacity to meet domestic demand and support exports. Dangote Petroleum Refinery alleges that DAPPMAN demands an annual subsidy of N1.505 trillion to match its prices. DAPPMAN, however, demands a discount of N70/litre for coastal freight, NIMASA, NPA, and other associated costs.
DAPPMAN has rejected allegations of sponsoring oil union workers to go on strike, describing them as misleading and factually incorrect.
The dispute between Dangote Petroleum Refinery and DAPPMAN over pricing and subsidies continues. The refinery maintains its position on pricing, while DAPPMAN insists on coastal logistics and additional costs. The impact of this disagreement on consumers and the industry remains to be seen.
