While Nigeria is grappling with the high cost of fuel, causing economic hardship, John Kekeocha, the national welfare officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN) has cited one of the possible reasons for the growing Premium Motor Spirit (PMS) price in the country.
Speaking with the New Telegraph on why Dangote Refinery pump price is costly, Kekeocha said the deregulation of the downstream and the removal of subsidy, have made the buying and the production of petroleum products not free, which is affecting the PMS cost in Nigeria.
He said Nigerians need to understand that Dangote Refinery is not a Nigerian Company and the Nigerian National Petroleum Company Limited (NNPCL) only buys fuel from it as an off-taker while the business mogul also gets supply of crude from the Company.
“There is one thing Nigerians need to understand or they fail to neglect,” Kekeocha said. “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.
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“Dangote is not a Nigerian company. It is an individual company, therefore, it buys crude from NNPCL and produces it, it has to produce and sell to make gain. NNPCL is only buying from them as an off-taker. Reasons marketers cannot lift petrol from Dangote Refinery.”
Meanwhile, Kekeocha said NNPCL and IPMAN, have already begun talking about how to carry out the strategy to ensure PMS pump price takes a downward review, through its president, Abubakar Shettima Magandi.
Kekeocha said: “IPMAN has had several meetings with NNPCL. The President, Alhaji Shettima Magandi, has had meetings with NNPCL on how to get bulk supply from NNPCL 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 NNPCL is going to receive a mass supply.”
He expressed optimism that Dangote petrol’s exorbitant fuel pump price would finally drop. “We will buy from NNPCL 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.
Newsmen earlier reported that 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 NNPCL, 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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