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Dangote Petroleum Refinery has reiterated its unwavering position and stood by its statement on the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN), as published on Monday, September 15, in various national newspapers, including Blueprint, as well as on numerous reputable online platforms.
The company emphasizes 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. It notes that the company is fully prepared to defend its position within the judicial ambit of the law.
“We wish to clarify that the crux of DAPPMAN's sustained attacks on Dangote Petroleum Refinery stems from their demand for an annual subsidy of N1.505 trillion to enable their members to match the refinery's gantry prices at their own depots.
“While we offer petroleum products to marketers at our gantry price, DAPPMAN insists on receiving products via coastal logistics, an option that would add N75 per litre in additional costs. Based on projected 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 are effectively asking us to absorb and pass on to consumers.
“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. DAPPMAN and other marketers are welcome to lift products directly from our gantry and benefit from our logistics-free initiative, “The company stated.
The Dangote Petroleum Refinery boasted that it has sufficient capacity to meet both domestic demand and export concerns, explaining that additional huge importation of products into the country by marketers, which is tantamount to dumping, is an action detrimental to the Nigerian economy and the well-being of its citizens.
The company further reiterated its unwavering steadfastness in support of the reform initiatives of His Excellency, President Bola Ahmed Tinubu, positing that Dangote has, through various strategic efforts, demonstrated its commitment to stabilising the Naira, cushioning the effects of fuel subsidy removal, and positioning the Nigerian downstream sector.
“We consistently maintain a closing stock of 500 million litres of refined products in our 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 well-being of its citizens.
“Dangote Petroleum Refinery remains steadfast in its support for the reform initiatives of His Excellency, President Bola Ahmed Tinubu. Through various strategic efforts, we have demonstrated our commitment to stabilising the Naira, cushioning the effects of fuel subsidy removal, and positioning Nigeria as a refining hub, boosting foreign exchange earnings, and creating employment opportunities, among others.
“We enjoy strong working relationships with government agencies and remain committed to supporting their efforts, while not hesitating to hold institutions accountable where necessary,” it concluded.
Dangote Petroleum Refinery reaffirmed its commitment to the progress and well-being of Nigeria and its citizenry, while expressing its openness to partnership with patriotic and responsible stakeholders in the pursuit of national development. The company has recently been involved in a series of labour disputes with various unions, one associated with the company and the oil workers’ union, NUPENG, over its newly purchased trucks to transport fuel from its refinery to filling stations across Nigeria.
In his recent media appearance on national television, the Chairman of Dangote Group, Aliko Dangote, bemoaned the Union's struggle to oppose the planned product trucking after investing 2 trillion in the purchase of 4000 CNG-powered trucks.
The union had raised concerns that the new development could put many of their drivers out of work. But Dangote dismissed those fears, insisting that no one is losing their jobs because of the trucks.
He explained that his company has actually launched nearly 3,980 bulk cargo trucks, and the real challenge is not job losses but finding enough qualified drivers. “Drivers are now very difficult to get, and we are not the only ones buying trucks,” he said.
In ensuring that drivers are well-informed for the task ahead, Dangote revealed that his company has well-equipped training schools, as the safety of all has remained the company’s top priority. He added that every truck costs between N175 million and N190 million, depending on type, and that the company has already invested close to N2 trillion in trucking.
“We have invested almost 2 trillion Naira in terms of trucking, how can somebody now just say no, don’t operate, park. Where and how?” Dangote asked.
He stressed that the investment is not taking jobs away but rather creating more opportunities. “Nobody will lose their job. We’re creating more jobs, and we’re even looking for people,” he said.