Marketers have called for direct access to Premium Motor Spirit (petrol) from the Dangote refinery, criticizing the Nigerian National Petroleum Corporation Limited (NNPCL) for its dominance over the market.Chinedu Ukadike, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), urged that the market be opened up for all, in line with NNPCL’s earlier commitment to a willing-buyer, willing-seller arrangement.
Previously, NNPCL had stated that it was not the exclusive buyer of Dangote refinery’s products and that the refinery could sell to any marketer. However, a week later, the Federal Government announced that NNPCL would be the sole purchaser of petrol from the refinery.At a press briefing in Abuja, Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, explained that marketers would need to buy petrol from NNPCL through its trading company.
Represented by Dr. Zaccheus Adedeji, Executive Chairman of the Federal Inland Revenue Service, Edun also disclosed that the Dangote refinery would start distributing petrol with an initial output of 25 million litres per day, beginning Sunday, September 15, 2024.Edun noted, “All agreements are in place, and loading of the first batch of PMS will begin as scheduled. Starting from October 1, NNPCL will supply crude oil to the Dangote refinery in exchange for PMS and diesel, all to be settled in naira.
“However, for now, petrol sales will be limited to NNPCL, which will then distribute to various marketers.In response, Ukadike called for a more open market, reflecting NNPCL’s previous stance. “The market should be liberalized, in line with the willing-buyer and willing-seller model. We are also working on logistics and pricing strategies,” he said.Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), expressed concerns about a new domestic monopoly in the oil and gas sector.
“As petrol distribution is set to start tomorrow, we remain uninformed about pricing or government plans. We need transparency from Dangote or whoever is overseeing this transaction,” he said, warning that the shift from NNPCL’s importation monopoly to a domestic monopoly could be harmful to the industry.
Meanwhile, NNPCL announced that 300 trucks had been mobilized to lift PMS from the Dangote refinery. NNPCL spokesperson Olufemi Soneye confirmed that the trucks were in place, awaiting the commencement of petrol loading on Sunday, per the agreement between both parties. “By the end of today, 300 trucks will be stationed at the refinery’s fuel loading gantry,” Soneye stated.