“It Will Create Monopoly”: Marketers Kick as Dangote Names Sole Distributor of Its Petrol
- Independent oil marketers have frowned at the decision of the Dangote Refinery to make NNPC its sole distributor
- The vice president of IPMAN, Chinedu Ukadike, disclosed that the move will create a monopoly in the system
- The Dangote Refinery said its petrol is ready for sale and named the NNPC as the sole buyer of its product
Don't miss out! Join Legit.ng's Sports News channel on WhatsApp now!
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Edwin Devakumar, the vice president of Oil and Gas at Dangote Industries Limited, has said that the Nigerian National Petroleum Company Limited (NNPC) will be the sole buyer of petrol from the Dangote Refinery.
Devakumar disclosed on Monday, September 2, 2024, that the $19 billion refinery had begun a petrol production test run and would begin flowing into the tanks.
Source: UGC
NNPC emerges as sole buyer of Dangote petrol
He said the facility is testing the product, which will begin flowing into the 600 million litre tank. He said that the NNPC is the sole distributor and would buy it exclusively as the refinery will export it as it has done with aviation fuel and diesel.
PAY ATTENTION: Share your outstanding story with our editors! Please reach us through info@corp.legit.ng!
However, the Independent Petroleum Marketers Association of Nigeria (IPMAN) opposed the idea that the national oil firm would only buy the Dangote petrol.
Marketers frown at Dangote’s decision
Chinedu Ukadike disclosed this, saying that Dangote’s decision may be influenced by NNPC’s investment in the refinery, stating that many refineries try to deal with their investors rather than other stakeholders.
According to a report by The New Telegraph, Ukadike said the move would create a monopoly in the system.
He said:
“Then the competition issue may be a problem, and there may still be a monopoly in the deregulated downstream sector. “As independent marketers, we are also asking Dangote to accept us as part of those who will off-take their product and give us the same environment as NNPC Ltd. “We are uncomfortable with NNPC Ltd being the sole off-taker of Dangote fuel.”
NNPC hikes prices after minister’s suggestion
The development comes following the roll-out of Dangote petrol on Tuesday, September 3, 2024.
Dangote disclosed that the petrol would hit the market within 48 hours after launch, saying it meets international standards and would export the product as it did with other petroleum products.
Following the release of Dangote petrol, the NNPC reportedly increased the pump price of the product across its retail stations nationwide.
The company hiked the price by 37% after the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, suggested that the company sell petrol above the landing cost to curb smuggling.
Labour Congress reacts to the new increase in fuel price
The Nigeria Labour Congress (NLC) has reacted to the latest increase in fuel price which took effect on the 3rd of September.
The congress accused the Government of betrayal.
President of NLC Joe Ajaero, made the accusation in one of his statements upon the increment of fuel price to almost 900 naira per litre by the Nigerian National Petroleum Company Limited (NNPCL)
Mr Ajaero explained that one of the reasons the union accepted 70,000 naira as the new national minimum wage was because of the understanding they reached with the Government that the price of fuel will not increase.
According to him, the Government is yet to implement the payment of the agreed 70,000 naira minimum wage.
NLC has called for immediate reversal of the latest increase in the price of petrol across the country.
Filling stations to adjust prices
Legit.ng earlier reported that petrol may rise above N1,000 per litre at filling stations as the product cost in some private depots has been increased to between N920 and N950 per litre.
The development follows protests by Nigerians in Abuja on Monday, September 2, 2024, over the lingering petrol scarcity nationwide.
The protesters demanded the resignation of Mele Kyari, the Group Chief Executive Officer of the Nigerian National Petroleum Company Limited (NNPC).
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
PAY ATTENTION: Stay Informed and follow us on Google News!
Source: Legit.ng
