“It Will be Cheaper”: Marketers Finally Open Up on When Dangote Will Slash Petrol Cost
- Petroleum marketers association said having a tank farm set aside will be beneficial for its members to distribute Dangote fuel
- The association's national welfare officer stated that owning a tank farm would simplify and streamline product distribution
- The official also expressed hope that the outrageous fuel pump prices of Dangote gasoline would eventually decrease
Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.
The Independent Petroleum Marketers Association of Nigeria (IPMAN) has explained that having a tank farm set aside specifically for its members to distribute petroleum from Dangote Refinery and Petrochemical will be more advantageous.
Source: UGC
It stated that possessing a tank farm of one's own would enable the product to be distributed effortlessly throughout all the corners of Nigeria.
In an interview with the New Telegraph over the weekend, John Kekeocha, IPMAN's national welfare officer, said that the association, through its president, Abubakar Shettima Magandi, was already in discussions with the Nigerian National Petroleum Company Limited (NNPC Ltd) over the implementation of the plan.
Kekeocha said:
“IPMAN has had several meetings with NNPC Ltd. The President, Alhaji Shettima Magandi, has had meetings with NNPC Ltd on how to get bulk supply from NNPC Ltd in such a way that we will have our own tank farm, which is in serious progress.
He said that the main reason for this is that IPMAN, which has the most stores nationwide, will be able to sell and spread this product easily if NNPC Ltd is going to receive a mass supply.
Petrol price to drop
He expressed optimism that Dangote petrol's exorbitant fuel pump price would finally drop.
“We will buy from NNPC Ltd because we believe that it will be cheaper and easier for IPMAN,” Kekeocha said.
“Dangote has just started production, so the cost of production will possibly be a little bit higher but as times goes on, their cost of production will be getting lower and lower until a reasonable price is fixed which will make it more comfortable for Nigerians.
“There is one thing Nigerians need to understand or they fail to neglect. With the deregulation of the downstream and the removal of subsidy, it means that the market or the downstream, the buying and production of petroleum products is not free for all. Therefore, anybody doing it, is doing it as a private business.
“Dangote is not a Nigerian company. It is an individual company, therefore, it buys crude from NNPC Ltd and produces it, it has to produce and sell to make gain. NNPC Ltd is only buying from them as an off-taker.
Speaking on the prospect of Dangote refinery, Samuel Oyekanmi, a research and insight associate with Norrenberger Financial Group said,
"The full implementation of Dangote Refinery is a potential growth propeller, however it will take time before we start seeing the full impact on the economy."
Reasons marketers cannot lift petrol from Dangote Refinery
Legit.ng earlier reported that according to the NNPCL, oil marketers are unable to import or purchase gasoline from the Dangote refinery due to the unviability and lack of cost-effectiveness of the product.
According to Dapo Segun, executive vice president of the downstream division of the NNPC, imports of gasoline were available to everyone.
He stated import licenses had been obtained by the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA).
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Source: Legit.ng
