Independent petroleum marketers are calling for direct access to Premium Motor Spirit (PMS) from the Dangote Refinery, criticizing the Nigerian National Petroleum Corporation Limited (NNPCL) for maintaining a firm grip on the market. The marketers argue that the sector should be liberalized to foster competition and fair pricing.
Chinedu Ukadike, National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria (IPMAN), expressed frustration with the current arrangement, urging the government to uphold its initial commitment to a “willing-buyer, willing-seller” model.
Ukadike’s comments came in response to conflicting signals from the NNPCL and the government. While the NNPCL previously stated that it was not the sole off-taker of products from the Dangote Refinery, the Federal Government later clarified that NNPCL would be the exclusive buyer of petrol from the refinery, sparking concerns about a potential monopoly.
At a press briefing in Abuja, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, announced that the Dangote Refinery would begin distributing 25 million litres of PMS daily, with NNPCL as the sole buyer. Marketers would then have to purchase the product through NNPCL’s trading company.
“We have put all agreements in place, and loading will begin on Sunday, September 15, 2024. From October 1, crude oil will be supplied to Dangote Refinery, and PMS and diesel will be supplied to the domestic market, all transactions being done in naira. But for now, only NNPCL will be able to buy PMS,” Edun said.
This move has raised concerns among marketers and industry stakeholders. Ukadike called for a more open market, stating, “The market should be liberalized in line with the NNPCL’s earlier commitment. We want transparency, and we are working on our logistics and pricing models.”
Billy Gillis-Harry, National President of the Petroleum Products Retail Outlets Association of Nigeria (PETROAN), echoed these concerns, warning that the creation of a domestic monopoly could harm the industry.
“We don’t know what the price will be, and there’s no transparency around the process. We’re moving from an NNPCL import monopoly to a domestic monopoly, which is dangerous for the industry,” Gillis-Harry said.
As the industry awaits further clarification on pricing and distribution, stakeholders are calling for a competitive and transparent fuel market, free from monopolistic control.
