In a major development within Nigeria’s downstream oil sector, the Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of pushing for an annual subsidy exceeding ₦1.5 trillion to align their depot prices with the refinery’s gantry rates.
The allegation was made amid ongoing discussions between the refinery and industry stakeholders regarding product pricing and distribution frameworks in the post-subsidy era.
According to Dangote Refinery, the subsidy demand is aimed at bridging the price gap between the rates offered by private depots under DAPPMAN and the competitive prices set at the Dangote facility’s loading gantry. The refinery claims that such a move could reintroduce a subsidy regime under a different guise—something it argues contradicts Nigeria’s current economic reform efforts.
Industry sources say the pushback from marketers stems from their struggle to remain profitable while competing with Dangote’s pricing model, especially as the refinery continues to ramp up production and disrupt traditional supply chains.
“This is an attempt to protect inefficiencies in the system. The solution is not more subsidies, but market-driven reforms,” a Dangote official reportedly stated.
The refinery, which began operations earlier this year, has positioned itself as a game-changer in Nigeria’s energy landscape, with the capacity to significantly reduce the country’s dependence on imported refined petroleum products.
Analysts believe the outcome of this dispute could have far-reaching implications for fuel pricing, distribution efficiency, and energy sector transparency in Nigeria.
