Marketers demand direct access to Dangote refinery

• Published On: 15 September 2024 at 19:28

Marketers are calling for direct access to the refinery's output, citing the Nigerian National Petroleum Corporation's market dominance.

This comes as the sale and distribution of Premium Motor Spirit from the Dangote refinery has sparked controversy.

According to The Punch, Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, believes that the market should follow the NNPCL's promise of a willing-buyer, willing-seller system.

Despite the NNPCL's previous assurances that it was not the sole purchaser of the refinery's products, the Federal Government recently announced that the NNPCL would be the sole buyer.

This was disclosed by Finance Minister Wale Edun at a press briefing in Abuja on Friday, who also stated that marketers would have to purchase petrol from the NNPCL's trading company.

The minister, represented by the Executive Chairman of the Federal Inland Revenue Service, Dr Zacceus Adedeji, also stated that the Dangote refinery will begin distributing petrol to marketers on Sunday, with an initial supply of 25 million litres per day.

He stated, "I am pleased to announce that all agreements have been finalised, and the loading of the first batch of PMS, as previously announced by NNPC, will begin on Sunday, September 15, 2024. And, beginning October 1, NNPC will supply crude oil to the Dangote refinery for payment in naira.

"In exchange, Dangote refinery will supply PMS and diesel of equivalent value to the domestic market for a fee in naira. However, PMS will be sold exclusively to NNPC for the time being. "NNPC will then sell to a variety of marketers."

Responding, Ukadike stated that the market should be liberalised.

"It should be open to all, consistent with the NNPC's comments about willing buyers and sellers. We are also considering how to structure our logistics and determine our price," he stated.

Meanwhile, Billy Gillis-Harry, the National President of the Petroleum Products Retail Outlets Association of Nigeria, expressed concern about the possibility of a new domestic monopoly in the oil and gas sector.

He is concerned that centralising petrol purchases and distribution through the NNPCL will stifle competition and create monopolistic conditions, harming both the market and consumers.

Gillis-Harry stated, "Right now, even on Saturday, that business (petrol) is going to start rolling out tomorrow (Sunday), and we don't know what the price will be." Nobody has informed us about anything, and we are unaware of what the government is doing.

"We do not yet know any of the pricing templates or the matrix that will generate the pricing template. We have asked Dangote or anyone in charge of this transaction to be transparent, but we have not received any of that information.

"We are about to leave NNPC monopoly from importation and now we are also going to have that in a domestic environment, that portends danger for the industry."