Dangote Petroleum Refinery has accused the Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) of demanding an annual government subsidy exceeding ₦1.5 trillion in order to bring depot product prices into parity with the company’s gantry rates. The refinery claims that DAPPMAN’s proposal, if accepted, would impose a significant financial burden on public coffers.
According to the refinery, the current gantry rates — the prices set for products directly at the refinery gate — are lower than what depot owners charge when distributing to the broader market, and DAPPMAN’s position is that bridging the gap requires state support. This demand, it asserts, is being made despite efforts by Dangote Refinery to maintain pricing transparency and supply stability.
The allegation has stirred debate among industry watchers, who question the sustainability of subsidizing price differentials. Some analysts warn that meeting such a large subsidy request could distort market incentives, inflate government expenditure, and possibly introduce inefficiencies in the downstream petroleum sector.
While DAPPMAN has yet to publicly confirm or refute the specific figure of ₦1.5 trillion, its representatives have in the past argued that depot operators face higher logistical, storage, and transportation costs compared to refinery‑level operations. For many stakeholders, the crux of the matter hinges on whether the government agrees to underwrite the difference — and what fiscal impact that would have amid other competing priorities.
